FINANCE: Brimstone Takes Control Of Lion Of Africa
Recent Western Cape Business News
Cape Town – Following recent discussions with short-term insurer Santam, Brimstone Investment Corporation and Commlife Holdings have agreed to acquire all of Santam’s current interests in the Lion of Africa Insurance Company Limited - interests currently equating to 35% of the current issued shares. The value of the proposed transaction has not been disclosed.
In terms of the transaction, Brimstone will acquire a further 21% shareholding of the entire issued shares of Lion of Africa Insurance Company - upping its original shareholding from an effective 39% of the Lion Group to a controlling 60%. Joint shareholder, Commlife Holdings will increase its shareholding in Lion from 26% to 40%.
Mustaq Brey, Chief Executive Officer of Brimstone says that the share sale transaction will significantly enhance Lion’s credentials as a wholly-owned BEE short-term insurer. “The investment and support given to the Lion of Africa Insurance Company over the past decade by co-shareholder Santam has been instrumental in establishing the business and its credentials in the South African market. The timing of the transaction presents an opportunity for the company to assume its own independence and move confidently into its next phase of growth.
Brey says: “Brimstone and Commlife, both Black owned companies, together with Santam have built another Black company from start up, created wealth and more than 100 jobs as well as contributed to a transformed insurance landscape.”
“From a Brimstone perspective, the transaction is congruent with the company’s strategic intent to restructure select assets within its portfolio to facilitate and enhance shareholder returns,” said Brey.
The transaction, which is subject to all regulatory approvals, is effective 30 June 2009.
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