The South African National Trust and Assurance Company Limited (Santam) says it is in the process of acquiring some stake in Enterprise Insurance Company Limited (EIC), a pioneer in the insurance industry in Ghana since 1924.
Santam, which is one of South Africa’s largest and leading short-term insurer announced that it will be spending about $28 million (200 million rand) on three acquisition deals on the continent including Ghana, Nigeria and Malawi before the end of 2011, the Reuters Agency reports citing its Chief Executive Officer (CEO) Ian Kirk as saying on August 31, 2011.
“The short-term insurer that is majority held by Santam said it hopes to increase its shareholding in Malawi’s Nico, acquire a stake in Ghana’s Enterprise Insurance Company and was working in partnership with Nigeria’s First Bank for a deal in Africa’s most populous nation,” according to Reuters.
“We are still busy trying to conclude the transactions and I would expect it to be done by the end of the year,” Ian Kirk told the Agency.
Santam did not state the percentage it intends to acquire in EIC.
Ghanabusinessnews.com checks indicates that the acquisition is nearing completion but officials of EIC declined to give details of the move when contacted saying the company will soon issue a statement on the development.
The 93-year-old Santam recorded a 16% growth in its headline earnings of 593 cents per share for the last six months ended June 2011 on the same period last year declaring a 200 cents interim dividend per share, according to its first half-year financial results released on August 31, 2011.
By Ekow Quandzie