DURBAN – Billionaire Patrice Motsepe is set to score big in Sanlam’s multi-billion expansion of its broad-based black economic empowerment (BBBEE) shareholding from 18 percent to 35 percent.
The insurer yesterday announced that it was planning a package of transactions aimed at strengthening its South African operations and positioning the company for growth over time through enhancing its empowerment credentials and building on its long-standing partnership with Motspe’s company Ubuntu-Botho Investments (UB).
Sanlam said it would issue an aggregate of 5 percent of ordinary shares to a new broad-based group of empowerment shareholders and UB.
The group said the issued shares to new and existing BBBEE shareholders would be worth nearly R8.6 billion. “The proposed transactions will increase economic inclusion as new broad-based beneficiary groups focused on black women and youth as well as Sanlam’s South African employees, will participate in 80 percent of the new shares to be issued,” Sanlam said. “UB will participate in the remaining 20 percent.”
Sanlam shares rose 3.28 percent on the back of the news to close at 74.26 on the JSE on Wednesday.