About the deal

Investec Bank acted as financial adviser and transaction sponsor to JSE-listed AfroCentric, proposing a transaction structure and assisting AfroCentric in assessing the partial offer from Sanlam. Sanlam offered a purchase consideration of R6.00 per AfroCentric share. AfroCentric shareholders had the option to receive the consideration either in cash, Sanlam shares or a combination thereof. The transaction will see Sanlam acquiring 43.9% of the issued share capital in AfroCentric, which represents 60% of the AfroCentric shares.

As part of the transaction, Sanlam will transfer its 28.7% shareholding in ACT Healthcare Assets Pty Ltd, a subsidiary of AfroCentric, to AfroCentric in exchange for an equal shareholding in AfroCentric.

About AfroCentric Investment Corporation Limited (“AfroCentric”)

AfroCentric is a JSE-listed investment holding company which operates in and provides specialised services to the public and private healthcare sectors, making quality healthcare more accessible and affordable to members and beneficiaries in both sectors.

A principal objective of the AfroCentric group is to ensure the delivery of efficient health management services, the distribution of quality products, all at manageable and affordable cost, for the benefit of scheme clients, scheme members and the group’s growing customer base in various new product lines being developed.

AfroCentric operates through three main clusters, namely the Services cluster, Pharmaceutical cluster and Corporate Solutions cluster. The Services cluster substantially comprises the medical scheme administration business. The Pharmaceutical cluster has a presence across manufacturing, wholesale and retail of drugs and multi-vitamins. The Corporate Solutions cluster comprises various entities that support the overall aim of offering uniquely integrated, employee-focused health and wellness solutions to corporate and institutional clients.

Deal Type
Target Headquarter
May 2023