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.
España Últimas Noticias, España Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
AYO responds to Business Day article | IOL Business ReportAYO Technology has responded to the front page article of the Business Day on Tuesday morning.
Fuente: IOL - 🏆 46. / 51 Leer más »
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.
Fuente: IOL - 🏆 46. / 51 Leer más »
Fuente: IOL - 🏆 46. / 51 Leer más »
Fuente: IOL - 🏆 46. / 51 Leer más »
Fuente: IOL - 🏆 46. / 51 Leer más »
Fuente: IOL - 🏆 46. / 51 Leer más »
Fuente: IOL - 🏆 46. / 51 Leer más »
Fuente: IOL - 🏆 46. / 51 Leer más »