South African financial services group Sanlam has completed the acquisition of a majority stake in Kenya’s largest fund manager by portfolio value, PineBridge Investments East Africa Limited.
Sanlam said it has received all regulatory approvals, thus successfully completing the transaction that will see PIEAL rebrand to Sanlam Investments East Africa Limited.
The transaction, whose value is still unknown, will see the South African financial provider integrate its asset management businesses in the region. SIEAL has operations in Kenya, Uganda, Tanzania and Rwanda and holds Sh200 billions in assets under their management.
Junior Ngulube, the chief executive of Sanlam Emerging Markets, said the successful conclusion of the acquisition, will pave way for Sanlam to integrate its asset management businesses, building a regional asset manager of scale under the Sanlam brand.
The acquisition is expected to grow its profile as PIEAL was ranked among the wealthiest fund managers in the country.
“The integration of Sanlam Investments East Africa into the Sanlam Group will strengthen our profile and cement our position in institutional, affluent and retail investment management across East Africa,” said Ngulube after the signing of the deal.
SIEAL will now focus on new products suited for the East African region.
Sanlam is now one of Africa’s biggest financial services providers with a portfolio of $10 billion (Sh1.03 trillion). Their investment management businesses currently have approximately US $60 billion (Sh6.23 trillion) in assets under management. Sanlam offers a comprehensive range of local and offshore investment products to end-investors, financial planners and institutions. Its investment options include passively and actively managed unit trusts, hedge funds, and segregated and pooled retirement funds.
The Sanlam Group is listed on both the Johannesburg and Namibian stock exchanges and boasts a market capitalisation of $11 billion (Sh1.1 trillion) as of March 2017. It has operations in 34 African countries.
Among its business clusters are Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Investments, Sanlam and the newly established Sanlam Corporate.
Sanlam Group provides comprehensive and tailored financial solutions to individual and institutional clients across all market segments. The Group’s areas of expertise include insurance (life and general), financial planning, retirement, investments and wealth. Formerly, Pan Africa Insurance Holdings issued profit warnings for three years in a row.