Sanlam is set to conclude the acquisition of a 60% stake in MultiChoice’s insurance business, NMSIS.
This strategic move aims to enhance insurance access across Africa, leveraging both companies’ strong market presence and technological capabilities.
Key Highlights
The acquisition is now finalized, with the transaction effective from November 30, 2024.
Subsequently, MultiChoice will receive an upfront payment of R1.2 billion, with a potential performance-based earn-out of up to R1.5 billion.
As a result, Sanlam will expand its insurance and financial services offerings to MultiChoice’s extensive subscriber base. Both companies will collaborate to leverage their strengths and maximize synergies.
MultiChoice’s Financial Performance
While this acquisition is a positive step for MultiChoice, the company has recently faced challenges. Its interim financial results for the period ended September 30, 2024, revealed:
- Decreased Revenue: An 11% decline in revenue to R24.8 billion.
- Worsening Losses: A significant increase in losses to R1.8 billion.
- Declining Subscriber Base: A loss of approximately 400,000 subscribers in South Africa.
MultiChoice is now relying on a potential R55 billion takeover deal with Canal+ to strengthen its position and compete with global streaming giants.