Standard Bank backs Sanlam's take-private acquisition of Assupol with R6.5 billion acquisition funding
25 Sep 2024
Earlier this year, Standard Bank provided Sanlam with a R 6.5bn funding commitment by way of a Takeover Regulation Panel (TRP) guarantee to facilitate their proposed acquisition of Assupol Holdings. With this transaction, the bank has now provided bridge funding for the full purchase consideration to be paid to shareholders.
South Africa’s insurance sector is expected to grow substantially over the medium term due to increased demand for insurance from the emerging consumer market. As one of the largest insurance providers in sub-Saharan Africa, this strategic acquisition of Assupol will allow Sanlam to expand its offering and provide a more comprehensive range of affordable insurance products and services to the historically underserved emerging consumer market.
Standard Bank acted in its capacity as sole TRP guarantee provider and lender in the transaction, which underscores its commitment to providing clients with tailored financial solutions to achieve their strategic objectives.
This transaction demonstrates Standard Bank’s ability to provide its key clients with substantial balance sheet support to meet their funding requirements. Standard Bank is able to support its corporate clients through the various stages of their strategic corporate activities, including strategic acquisitions, funding and advisory. By providing this commitment to Sanlam, Standard Bank is supporting consolidation within the insurance sector and cementing its leading position as the go-to investment bank for large scale acquisition funding and take-private deals.
As Africa’s largest bank by assets, Standard Bank is proud to have an opportunity to play a crucial role in the growth of a market leading company such as Sanlam and look forward to continuing to support the company’s future endeavours.
Sanlam announced its intention to acquire South African mass market focused insurer Assupol Holdings for R6,5 billion in February 2024.