Allianz Europe BV, a subsidiary of the Allianz Group, a global leader in insurance and asset management, has announced its intention to increase its indirect shareholding in Sanlam Kenya Plc from 23.09% to 28%.
This follows the signing of a conditional share purchase agreement with Sanlam Emerging Markets Proprietary Limited (SEM).
This transaction aligns with the broader strategic partnership between Allianz and Sanlam Limited.
In May 2022, they formalized Sanlam Allianz Africa, a joint venture aiming to become the largest Pan-African non-banking financial services entity, operating across 27 countries.
Key Considerations
Financial Performance: Sanlam Kenya reported a net loss of KSh 127 million in 2023, primarily attributed to rising finance costs amidst a high-interest rate environment.
Previous Investments: Allianz previously acquired a 66% stake in Jubilee General Insurance’s operations across East Africa in 2021, marking its significant entry into the East African insurance market.
Regulatory Compliance: To proceed with the transaction, Allianz has applied for an exemption from Kenya’s Capital Markets (Take-overs & Mergers) Regulations, given Sanlam Kenya’s listing on the Nairobi Securities Exchange. The company has emphasized that this transaction will not impact Sanlam Kenya’s direct ownership structure.
