Sanlam has announced plans to buy a 25% stake in African Rainbow Capital Financial Services Holdings (ARCFSH), which is the parent company of TymeBank. The acquisition involves Sanlam’s Life unit paying R2.413 billion in cash and exchanging its 25% shareholding in African Rainbow Capital Financial Services Investments for equivalent shares in ARCFSH. This move is seen as adding value for shareholders and allows Sanlam to leverage TymeBank’s distribution network to offer insurance products to the mass market. The transaction is considered a “natural extension” of Sanlam’s existing interests, and the 25% stake will be treated as an investment in an associate.
