SAN­LAM

Finweek English Edition - - INVESTMENT -

BUY SBG Se­cu­ri­ties re­main neg­a­tive on the out­look for the JSElisted in­surance group, with a 12-month price tar­get of R39/share. This fol­lows the an­nounce­ment that San­lam had re­ceived Cen­tral Bank and Min­istry of Fi­nance ap­proval to ac­quire 49% of Pa­cific & Ori­ent In­surance as it ex­pands its Asian foot­print. An­a­lyst Risto Ke­tola ad­vised: “San­lam man­age­ment has pre­vi­ously stated that they are look­ing to in­vest up to R2.0bn in Asia out­side of In­dia (San­lam re­cently in­vested an ad­di­tional R2.0bn in In­dia). We thus ex­pect San­lam to in­vest at least a fur­ther R1bn into the SE Asia re­gion over time. This ad­di­tional in­vest­ment will most likely, in our view, be through ex­pand­ing P& O’s ge­o­graphic pres­ence in the re­gion.”

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