Big deal as MultiChoice is set to sell majority stake of its subsidiary

5 months ago 55

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Sanlam Limited, an insurance company based in South Africa, is poised to purchase a 60% stake in NMS Insurance Services, the insurance division of MultiChoice Group, for R1.2 billion (approximately N99.14 billion).

In a joint announcement, the companies disclosed that the agreement features a long-term commercial partnership aimed at broadening the scope of insurance and related financial services available to MultiChoice’s large subscriber base across Africa.

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Legit.ng earlier reported that French media conglomerate Groupe Canal+ obtained a 40.01% stake in MultiChoice, ending ongoing speculations regarding a prospective merger.

Beyond the initial cash payment, a performance-based earn-out could go higher, depending on the gross written premium produced by NMSIS by the end of the financial year on 31 December 2026.

MultiChoice indicated that the cash proceeds from this deal would be allocated for working capital, while it maintains a 40% stake in NMSIS.

Commenting on the deal, Sanlam Group Chief Executive Officer, Paul Hanratty, said:

“It affords us the opportunity to leverage our respective market footprints and technological capabilities that will support growth and market pen*tration, as well as provide opportunities to realise synergies for the benefit of all stakeholders.”

MultiChoice CEO, Mr Calvo Mawela, said:

“This collaboration with Sanlam is a strategic milestone for MultiChoice. It not only allows us to increase the value we provide to our subscribers but also enables us to leverage Sanlam’s expertise to drive growth and innovation in our insurance offerings across the continent. It is a nod to the incredible work done by our teams.”

Source: Legit.ng

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