Sanlam Ltd. unit Sanlam Life Insurance Ltd. will acquire a 53% stake in life insurance provider BrightRock Holdings Pty. Ltd.

The transaction will be facilitated through a combination of a share subscription and purchases from various shareholders and from Correlation Investments Ltd.

Sanlam Personal Finance deputy CEO Hennie de Villiers said due diligence for the sale has been finalized, with its completion depending on final regulatory approvals.

The sale price will depend on the date of completion but is expected not to exceed 707 million South African rand if the transaction closes in the first half. Sanlam will fund the acquisition from its discretionary capital.

Sanlam said the acquisition, which is in line with its strategy to seek profitable and sustainable growth opportunities and is part of its commitment to invest in South Africa, will place it in a strong position to grow its market share.

Following the acquisition, Sanlam and BrightRock will continue to function independently and will retain their own respective brands, licenses and management teams, with BrightRock products to be also sold through Sanlam Financial Advisers in the future.

As of Jan. 25, US$1 was equivalent to 13.25 South African rand.