Sanlam acquires large stake in PineBridge

JSE-LISTED financial services group Sanlam reached an agreement with PineBridge Investments, a leading global multi-asset-class manager, to acquire a majority stake in PineBridge Investments East Africa Limited in Kenya (PIEAL) for an undisclosed amount.

Sanlam intends to acquire PineBridge Investments East Africa through Sanlam Emerging Markets (SEM).

The transaction is subject to regulatory approval, following which PIEAL will be rebranded Sanlam Investments East Africa Limited (SIEAL). Sanlam will then look to integrate its asset management businesses in the region.

Enhanced capability

Both parties have declined to comment further at this stage.

In January, Sanlam acquired a 53 percent stake in life insurance provider BrightRock, which is still subject to regulatory approval.

Junior Ngulube, the chief executive of SEM, said the acquisition would increase Sanlam’s asset management presence and capability in the region and enable the group to build a leading position in institutional, affluent and retail investment management across East Africa.

“The existing Sanlam businesses in East Africa will be able to leverage SIEAL’s capabilities. As the business develops, it will provide opportunities to expand geographically and develop other investment products,” said Ngulube.

He added that the transaction was expected to unlock synergies that reach beyond asset management.

Anthony King, the regional chief executive for Europe, the Middle East and Africa at PineBridge Investments, said: “We looked for a partner in Africa who could best continue to work with our clients on the continent and we are pleased to have been able to complete this transaction with Sanlam.”