(Ecofin Agency) - South African financial group Sanlam which owns a 30% interest in Saham Finances will acquire an additional 16.6% in the Moroccan firm. It will for the interest spend $329 million, valuing Saham Finances at about $2 billion.

In a statement published on December 14, Saham Finances said it was pleased by the turn of event, mentioning a stronger partnership between the two groups, which allows them to provide insurance services in 39 countries. “We are glad to strengthen the partnership between our two institutions to put together our skills and networks. This will Saham Finances reinforce its leadership on the continent,” said Raymond Fahrat Managing Director, Saham Finances.

Sanlam’s first acquisition in the Moroccan firm took place through a joint venture of which its emerging markets focused branch held 75% while Santam, its short-term insurance subsidiary, held the remaining 25%. The latter should in the new investment provide $7.35 million.

Sanlam Emerging Market will provide the rest, of which $200 million from its own funds and remainder from external funding, with its mode (loan or capital increase) yet to be disclosed. In this regard, SEM will now be holding 85% of the JV while Santam will hold 15% only.

The deal is however still subject to some conditions, but should be finalized by the end of the second quarter of 2017.

Saham Finances, a robust company, generated a turnover of more than $1 billion in 2015. Its main insurance branch, Saham Assurance, which is listed on the Casablanca stock market, had a plus-value of 30% since this beginning of the year. Its share surged significantly in mid-November 2016.