MultiChoice inks R1.2bn deal to sell most of its insurance business to Sanlam

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MultiChoice inks R1.2bn deal to sell most of its insurance business to Sanlam

DStv and Showmax owner MultiChoice has inked a R1.2 billion cash deal to sell 60% of its insurance business, NMS Insurance Services, to Africa's largest non-bank financial services group Sanlam.

NMS, a registered South African composite micro-insurer and authorised financial services provider, is licensed to underwrite both non-life and life insurance products. It has been writing insurance for the past 20 years under the DStv brand of MultiChoice focusing on device, installation, funeral, subscription waiver and debt waiver insurance products.

After careful evaluation of available options, MultiChoice said it wants to collaborate with Sanlam given that firm's extensive presence and expertise across the African continent, the group said, with the deal including a R1.2 billion upfront cash payment, and an earn-out agreement of up to R1.5 billion. The latter is contingent on the financial performance for the year to end 2026.South Africans need to be in the know if we want to create a prosperous future.

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