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
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
“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.
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