(Ecofin Agency) - General insurance company Santam has offered to buy the remaining 76% stake it does not own in Indwe Broker Holdings Proprietary.
Under its plan, Santam engaged in talks with ARC Financial Services Investments Proprietary to acquire the 51% stake it holds in Indwe. The other 25% interest belongs to Sanlam, Santam's parent company.
Santam bids R125 million ($8.3 million) in cash for its acquisition. Once the transaction is completed, Santam plans to retain Indwe's commercial operations and divest the firm's corporate and specialty businesses.
African Rainbow Capital (ARC), the parent company of ARC Financial Services Investments Proprietary, entered into a shareholding agreement that resulted in the acquisition of a majority stake in Indwe in 2016. Five years later, ARC plans to exit. This leaves room for short-term insurer Santam and its parent company.