Sanlam ups stake in Indian firm by R1bn

Johannesburg - Insurance group Sanlam [JSE:SLM] has acquired a further 3.7% in Indian firm Shriram Transport Finance Company (STFC) for nearly R1bn, raising its stake to about 10%.

Sanlam already holds stakes in Chennai-based conglomerate Shriram Group's insurance businesses.

STFC is a commercial vehicle financing business, listed on both the Bombay and National Stock Exchanges in India, with a loan book of approximately R60bn.

The transaction is in line with the group’s strategy to increase its holdings in existing partners where appropriate. It further strengthens the existing relationship between Shriram and Sanlam. 

Said Heinie Werth, CEO of Sanlam Emerging Markets (SEM): “This transaction is yet another highlight and a significant step in our efforts to meet our strategic objectives to diversify both geographically and into broader financial services. We are pleased with the progress we are making in this regard.”

“The transaction will facilitate Sanlam’s further access to the strong growth and profit generating capacity of the financing entities within the Shriram Group and in the Indian market.  It is an important and logical next step in strengthening Sanlam’s, and particularly SEM’s, relationship with Shriram. The strong relationship that we continue to enjoy is further entrenched in the long term benefit for both companies," Werth said.