Sanlam (SLM) M&A Announcement summary

Deal rationale and strategic fit

• Partnership with Ninety One aims to strengthen international and South African active asset management capabilities and private credit strategies, leveraging scale, expertise, and cultural alignment.

• Sanlam seeks to offer optimal investment solutions by leveraging Ninety One’s scale and expertise, expanding access to international and private credit assets.

• The deal allows Sanlam to focus on multi-management, passives, alternatives, and private wealth, while active management is housed with a global leader.

• Cultural alignment and complementary expertise are key drivers for the collaboration.

Financial terms and conditions

• Ninety One will issue shares to Sanlam and Sanlam Investment Holdings, resulting in a combined 12.3% stake in Ninety One’s enlarged share capital.

• Around ZAR 400 billion in assets under management will transfer to Ninety One as of September 2024.

• The relationship is set for an initial 15-year term.

• In early years, earnings and dividends are expected to be slightly dilutive, turning positive after three years, with a slight improvement in group solvency.

• Sanlam will become an anchor investor in Ninety One's international private credit strategies.

Integration plans and timeline

• All investment professionals in the active business, including SIM and Sanlam UK, will move to Ninety One at closing.

• Sanlam Investment Management will be restructured as a clean entity before transfer.

• Operative agreements to be finalized by March 2025, followed by shareholder and regulatory approvals, and then implementation.

• No immediate changes for clients pre-closing; post-closing, institutional clients transition to Ninety One.