The proposed takeover of Santam by Sanlam, its majority shareholder, may significantly impact trading activity on the Namibian Securities Exchange. Santam accounts for 5.15% of the exchange's total equity turnover so far this year, with 846,209 shares traded, generating N$348.85 million in value across 171 deals. This makes Santam one of the more significant contributors to trading activity on the local exchange.
Sanlam, which already owns about 63% of Santam, has offered R505 per share to acquire the remaining shares and take the insurer private. The transaction, if approved, will result in Santam being delisted from the Johannesburg Stock Exchange, the Namibian Securities Exchange, and A2X. According to Sanlam, the offer represents a 26.6% premium to Santam's share price of R399 at the time of the announcement.
The proposed takeover has significant implications for minority shareholders, who will receive R505 in cash for each share they hold. This represents a substantial premium, above Santam's previous record high of R451.70. For the Namibian Securities Exchange, however, the transaction means losing a counter that has accounted for more than one in every N$20 dollars traded in the equity market this year.
Sanlam Group chief executive Paul Hanratty says the takeover aims to bring Santam fully into the group and simplify its structure. He states that this is the natural next step in a partnership that has developed over more than a century, providing Santam minority shareholders with an attractive cash liquidity opportunity at a premium.
Santam chief executive Tavaziva Madzinga says the proposal provides shareholders with a cash-certain outcome while allowing the insurer to access Sanlam's capital and broader capabilities. He notes that the transaction would provide continuity for Santam's clients, intermediaries, and employees while supporting further investment in the business and its expansion across Africa.
The transaction remains subject to Santam shareholder and regulatory approval, with a general meeting expected to be held around 30 November, and implementation targeted for the first quarter of 2027. Sanlam itself has accounted for a further 11.38% of NSX equity turnover, with 8.68 million shares traded at a value of N$770.72 million through 283 deals.
Combined, Sanlam and Santam have contributed 16.53% of the exchange's equity turnover this year. The takeover will support Sanlam's Vision 2030 strategy by simplifying the group, deepening integration between its businesses, and allowing it to allocate capital towards opportunities aimed at long-term growth.
Key points
- Sanlam's proposed takeover of Santam may reduce trading activity on the Namibian Securities Exchange.
- The transaction will result in Santam being delisted from several stock exchanges.
- The takeover aims to simplify Sanlam's structure and support its Vision 2030 strategy.
