Sanlam buys 32.66% Niko Tanzania stake

Sanlam Emerging Markets (Proprietary) Limited, a South African-based life insurer, has completed the acquisition of 32.66 percent stake in Nico Holdings Limited’s general insurance subsidiary, Niko Insurance Tanzania.

Nico Holdings Limited company secretary Emily Makuta in a statement yesterday, indicated that the deal, which was completed on June 20 2014, has resulted in local shareholders in Tanzania buying 33.34 percent with 34 percent being held by the Malawi Stock Exchange (MSE)-listed financial services group.

The deal, according to Nico Holdings Limited, dragged because the parties were “awaiting fulfilment of a remaining condition precedent”.

Towards the end of last year, Sanlam finalised the acquisition of 49 percent stake in three of Nico Holdings Limited’s general insurance subsidiaries, namely, Nico General Insurance Company Limited of Malawi, Nico Insurance Zambia Limited and Nico Insurance Uganda Limited.

Makuta earlier said the parties agreed to complete the sale of the 49 percent shareholding in three Nico Holdings’ general insurance subsidiary companies to make progress in the transaction rather than wait until all the four general insurance subsidiary companies were ready for completion.

Shareholders of Nico Holdings Limited duly approved the sale of the subsidiaries’ stake on November 4 2013 at its extra ordinary general meeting in Blantyre.

Sanlam, which has interests in India, Malaysia and 10 African countries, already owns 49 percent of Nico Life Insurance, which it acquired two years ago.

In October, Sanlam indicated it had a R3.2 billion war chest for acquisitions in Malaysia or Indonesia and expansion in Africa.

Nico Holdings, which has interests in life insurance, general insurance, technology, investment advisory and banking, was the first company to list on the MSE in 1996.