Alex Forbes is facing a ‘de facto’ takeover | IOL Business Report

JOHANNEBSURG - Financial services firm Alexander Forbes is set to emerge as the biggest loser in a deal that would see it dispose of its short-term insurance business to Sanlam, with Alexander Forbes’s second-biggest shareholder African Rainbow Capital said to be front and centre of the deal. ARC is a wholly owned subsidiary of Sanlam’s biggest shareholder, Ubuntu-Botho, the investment vehicle of business magnate Patrice Motsepe, who also serves as Sanlam’s deputy chairperson.

“The short-term insurance business has been a solid growth engine for Alexander Forbes and covers an element of fixed costs. Any sale of this would, therefore, be counter-intuitive to the notion of shareholder value creation,” the source said.The mooted sale of the asset comes despite the Alexander Forbes board just last year showing faith in the growth prospects of the business and the overall Ambition 2022 strategy crafted under Darfoor’s watch with improving results being delivered.

Alexander Forbes chairperson Nonkululeko Nyembezi, in an emailed response, said the group had reiterated its commitment to the broader strategy of growing the business of Alexander Forbes in its core market segments. Business Report has it on good authority that ARC co-chief executive Johan van Zyl, who also wears the hat of Sanlam chairperson and chief executive of Ubuntu-Botho, is instrumental in seeing the deal through.

“Therefore, my suggestion is that you sell your general insurance book to another player of scale. In this way, you will not only get good money for your book , which can be either returned to shareholders or used for focused acquisitions in areas where you can win.”Van Zyl referred all questions directed to ARC to Ainsley Moos, corporate and stakeholder relations at the group.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

AYO responds to Business Day article | IOL Business ReportAYO Technology has responded to the front page article of the Business Day on Tuesday morning.
La source: IOL - 🏆 46. / 51 Lire la suite »

Data rollover changes: Here's what you need to know | IOL Business ReportThe new regulation is set to set to come into effect between the 28th of February and 1st of March 2019. busrep We're being charged exorbitant amounts for data, now Vodacom will be charging 'rollover' fees! Just another way to screw us over & milk us for more.
La source: IOL - 🏆 46. / 51 Lire la suite »

Earn bonus Pick n Pay Smart Shopper points with TymeBank | IOL Business ReportShoppers can now earn bonus Pick n Pay Smart Shopper loyalty points everywhere they shop and pay with their TymeBank debit card.
La source: IOL - 🏆 46. / 51 Lire la suite »

EOH suspends employees involved in sabotaging Microsoft deal | IOL Business ReportEOH Holdings has suspended some of its employees that were involved in deals being reviewed by its lawyers.
La source: IOL - 🏆 46. / 51 Lire la suite »

Botswana agrees to extend $95mn credit line to Zimbabwe: minister | IOL Business ReportZimbabwe is currently facing a crippling foreign currency shortage that has affected the importation of essential commodities. busrep Sadc should just put Zimbabwe under administration for 5 years,run its finances with administrator from Botswana.Or 10 years down the line Zim economic situation will be in same position.
La source: IOL - 🏆 46. / 51 Lire la suite »

Dineplan app wins Most Innovative Tech Solution award | IOL Business ReportDineplan took first place as the Most Innovative Tech Solution in the Food and Beverage Industry at the Cape Town Experiences Magazine Awards 2019.
La source: IOL - 🏆 46. / 51 Lire la suite »

WhatsApp is working on an Advanced Search feature | IOL Business ReportMessaging platform WhatsApp is working on a new feature to better their chat search function according to WABetaInfo.
La source: IOL - 🏆 46. / 51 Lire la suite »

WATCH: inDriver, a bargaining ride-hailing app has launched in SA | IOL Business ReportThe ride-hailing app called inDriver that lets passengers bargain for a good price, has arrived in South Africa.
La source: IOL - 🏆 46. / 51 Lire la suite »