MultiChoice to rake in R1.2-billion from subsidiary sale
MultiChoice Group will rake in R1.2-billion in cash at the end of this month after the planned sale of its insurance business to Sanlam.
MultiChoice and Sanlam said in a joint statement to investors on Monday that the conditions precedent have been fulfilled, including approval by the Competition Tribunal and the Prudential Authority.
Sanlam Life, a wholly owned subsidiary of Sanlam, agreed in June to acquire a 60% stake in MultiChoice-owned NMS Insurance Services (NMSIS). The two companies also entered into a long-term commercial agreement to expand insurance and related financial services offerings into MultiChoice’s subscriber base across Africa.
“The transaction will become effective on 30 November 2024, upon which date MultiChoice will receive an upfront cash consideration of R1.2 billion for its NMSIS stake, with a potential performance-based cash earn-out, measured at 31 December 2026, of up to a maximum additional consideration of R1.5 billion,” the companies said.
In June, when the proposed transaction was first announced, the companies said that the deal would give MultiChoice access to “unparalleled insurance expertise, comprehensive financial services resources and access to Sanlam’s financial services operations across Africa to address MultiChoice client needs”. –NewsCentral Media
MultiChoice and Sanlam said in a joint statement to investors on Monday that the conditions precedent have been fulfilled, including approval by the Competition Tribunal and the Prudential Authority.
Sanlam Life, a wholly owned subsidiary of Sanlam, agreed in June to acquire a 60% stake in MultiChoice-owned NMS Insurance Services (NMSIS). The two companies also entered into a long-term commercial agreement to expand insurance and related financial services offerings into MultiChoice’s subscriber base across Africa.
“The transaction will become effective on 30 November 2024, upon which date MultiChoice will receive an upfront cash consideration of R1.2 billion for its NMSIS stake, with a potential performance-based cash earn-out, measured at 31 December 2026, of up to a maximum additional consideration of R1.5 billion,” the companies said.
In June, when the proposed transaction was first announced, the companies said that the deal would give MultiChoice access to “unparalleled insurance expertise, comprehensive financial services resources and access to Sanlam’s financial services operations across Africa to address MultiChoice client needs”. –NewsCentral Media
