Sanlam Emerging Markets (Proprietary) Limited, a South African-based life insurer, is yet to finalise the acquisition of 49 percent stake in Nico Holdings Limited’s general insurance subsidiaries, Niko Insurance Tanzania.
The deal is “still awaiting fulfillment of a remaining condition precedent”, according to the Malawi Stock Exchange (MSE)—listed financial services group’s company secretary Emily Makuta, is “still awaiting fulfillment of a remaining condition precedent”.
“The general public and shareholders are advised to continue to exercise caution when dealing with Nico Holdings Limited shares,” she said, in a cautionary statement to its shareholders.
At the end of last year, Sanlam finalised the acquisition of 49 percent stake in three of Nico Holdings Limited’s general insurance subsidiaries, namely Nico General Insurance Company Malawi Limited, Nico Insurance Zambia Limited and Nico Insurance Uganda Limited.
Makuta said the parties agreed to complete the sale of the 49 percent shareholding in three general insurance subsidiary companies to make progress in the transaction rather than wait until all the four general insurance subsidiary companies were ready for completion.
Shareholders of Nico Holdings Limited duly approved the sale of the subsidiaries’ stake on November 4 2013 at its extra ordinary general meeting in Blantyre.
Sanlam, which has interests in India, Malaysia and 10 African countries, already owns 49 percent of Nico Life Insurance Company Limited, which it acquired two years ago.
In October, Sanlam indicated it had a R3.2 billion war chest for acquisitions in Malaysia or Indonesia and expansion in Africa.
Nico Holdings which has interests in life insurance, general insurance, technology, investment advisory and banking was the first company to list on the MSE in 1996.