Sanlam Offers R505 a Share to Buy Out Santam Minority

In Short

• Sanlam has announced a firm intention, through its subsidiary Sanlam Life, to acquire all Santam shares it does not already own.
• The offer is R505 per Santam share, payable in cash.
• If approved and implemented, Santam will delist from the JSE.

What Happened

Sanlam said it plans to buy the remaining Santam shares it does not already own, using a court supervised process called a scheme of arrangement. Sanlam currently holds an effective 62.7% stake in Santam, excluding treasury shares, based on its disclosed position as at 18 September 2026.

A scheme of arrangement is a legal process under South Africa’s Companies Act where a company proposes a deal to shareholders and, if enough shareholders vote in favour, it becomes binding on the whole class. It is often used for takeovers because it provides a structured way to reach all shareholders at once.

Under the implementation agreement signed on 5 October 2026, Sanlam, acting through Sanlam Life, will pay R505 in cash for each eligible Santam share. The proposal excludes shares already held by Sanlam group subsidiaries and any Santam treasury shares.

Sanlam’s announcement also notes that once the scheme is implemented, Santam’s delisting from the JSE main board would happen automatically under JSE Listings Requirements. Applications would also be made to end Santam’s listings on the NSX and A2X.

Why It Matters

For public market investors, the proposed Santam delisting would remove one of South Africa’s most visible short term insurers from the JSE. It also concentrates ownership under Sanlam, which already controls Santam.

For the insurance and insurtech ecosystem, a full buyout can change how capital is allocated. A delisted insurer can move faster on product investment, partnerships, and technology upgrades, but it also reduces public market transparency such as quarterly reporting and detailed disclosures.

The next key steps are the circular to shareholders, regulatory and procedural approvals, and a shareholder vote by scheme participants. If the required majorities approve, minority shareholders would be cashed out at the scheme price and Santam would exit the public market.