The transaction is subject to regulatory approval, following which PIEAL will be rebranded Sanlam Investments East Africa Limited (SIEAL).
Sanlam will then look to integrate its asset management businesses in the region.
East Africa
PIEAL is an asset management company in East Africa with operations in Kenya and Uganda. It is licensed by the Capital Markets Authority and the Retirement Benefits Authority in Kenya and the Ugandan Capital Markets Authority and the Uganda Retirement Benefits Regulatory Authority.
SEM chief executive, Junior Ngulube, says the acquisition will increase Sanlam’s asset management presence and capability in the region and enable the group to build a leading position in institutional, affluent and retail investment management across East Africa.
Anthony King, regional chief executive Emea, at PIEAL parent company PineBridge Investments, says: “We looked for a partner in Africa who could best continue to work with our clients on the continent and we are pleased to have been able to complete this transaction with Sanlam.
“At the forefront of our negotiations was the need to secure a buyer with a strong local heritage in order to maximise future business growth and honour fiduciary, client and employee agreements. Sanlam is a respected brand with a compelling regional footprint that will offer financial strength and further access to local investment opportunities.”
Geographic expansion
Ngulube said that the transaction is expected to unlock synergies that reach beyond asset management. “The existing Sanlam businesses in East Africa will be able to leverage SIEAL’s capabilities. As the business develops, it will provide opportunities to expand geographically and develop other investment products.”
The Sanlam Group is one of Africa’s largest financial services providers, with a market capitalisation in excess of $11bn (£8.9bn, €10.2bn) and operations in 34 African countries.
Their investment management businesses currently have approximately $60bn in assets under management.
Sanlam offers a comprehensive range of local and offshore investment products to end-investors, financial planners and institutions. Its investment options include passively and actively managed unit trusts, hedge funds, and segregated and pooled retirement funds.
Jonathan Stichbury, chief executive of PIEAL, said: “Becoming part of the Sanlam Group offers our clients and staff new opportunities. We look forward to working with Sanlam to create value for our clients and continue building the East African business.”
