Sanlam has splurge $1.05 billion on the remaining shares of Morocco’s Saham.
Investors are raising eyebrows even as Sanlam Group CEO Ian Kirk calls this latest move a ‘cape to Casablanca’ footprint.
Having bought previous stakes in Saham, 30% in 2016 and 16.6% in 2017 at hefty price to earning multiples, Sanlam seems to be more than willing to pay a premium for control.
This latest move makes it Africa’s second largest in financial services behind ABSa’s R18.3 billion purchase of Barclays Africa’s operations in June 2013.
Analysts are however skeptical, questioning if Sanlam has the management bandwidth to oversee such a large number of businesses.
The group is now in 33 African countries with eyes on Ethiopia where it already has a local partner in Egypt.