JOHANNESBURG - Financial services group and insurer Sanlam said on Wednesday that it plans to provide a R2 billion facility to its black-economic empowerment partner, Ubuntu-Botho or its subsidiaries, to support the execution of Sanlam's empowerment strategy to be a diversified pan-African financial services group.
This as Sanlam announced that it intends to issue an aggregate of five percent of its enlarged issued ordinary shares to a new broad-based group of empowerment shareholders and Ubuntu-Botho.
The proposed share transfer 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 while Ubuntu-Botho will participate in the remaining 20 percent.
As a result, Sanlam will increase its B-BBEE scoring to be a Level 1 contributor and will increase direct black ownership in Sanlam to over 18 percent and black economic ownership to over 35 percent, as measured in terms of the Financial Sector Code, placing Sanlam in a strong position in terms of empowerment.
Ubuntu-Botho Investments is Sanlam's empowerment partner and a financial services firm involved in asset management, private equity and insurance. It currently holds about 14.5 percent of Sanlam's issued shares valued at about R17 billion at present.