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Santam/Super Group deal approved

Oct 27 2009 10:47

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Johannesburg - The Competition Commission on Tuesday recommended that the Competition Tribunal approve the intended acquisition by Santam of Emerald Insurance Company, and an intended acquisition by Reunert (RLO) of 60% shares in Siemens Enterprise Communications (SEC) from Siemens.

Santam intends to acquire 100% of the issued share capital in Emerald Insurance Company from Super Group. Post acquisition, the Emerald licence would be run off and its book transferred to Santam.

Santam also intends to acquire 100% of the issued share capital of Emerald Underwriting Managers (EUM), 38% of which will be acquired from Super Group and 62% from Gary Corke, Dave Manuel and the Senior Management Trust.

An internal restructuring would then occur which would see Santam transfer its corporate underwriting unit to EUM, thereby housing Santam's entire corporate short term insurance business in EUM. This specialist corporate underwriter would also operate as "Emerald underwritten by Santam".

It is envisaged that Santam will transfer its shares in EUM to Swanvest 120, a Santam wholly owned Investment Holding Company, which holds all of Santam's interests in its different underwriting managers. The business of EUM currently housed in the Centriq cells, particularly relating to haulage, will be excluded from the transaction.

Meanwhile, Reunert intends to acquire 60% shares in SEC from Siemens. Reunert currently holds 40% of the shares in SEC. Reunert will solely control SEC post merger.

The Commission recommended that the Tribunal approve these mergers without conditions.

- I-Net Bridge

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