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Sanlam unit acquiring 30% stake in online investment platform owner


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Sanlam unit acquiring 30% stake in online investment platform owner

Sanlam Investment Holdings Pty. Ltd. will acquire a 30% stake in First World Trader Pty. Ltd., which trades as EasyEquities, from South Africa-based financial services provider Purple Group Ltd. for 100 million South African rand ($7.5 million) in cash.

The Sanlam Ltd. wholly owned subsidiary will acquire 450,000 ordinary shares in EasyEquities, a technology-focused owner and operator of an online investment platform. The deal does not include and GT Private Broking, which were previously operated within First World Trader but were transferred into separate entities wholly owned by Purple Group during an internal restructuring process.

Under the deal, Purple Group will repurchase 35,087,720 ordinary shares from Sanlam Investment Holdings for 55 cents per share, or a total of nearly 19.3 million rand. The Sanlam subsidiary had acquired those shares at 55 cents per share at February-end.

Purple Group will use the purchase consideration to settle inter-group loans and fund the repurchase. Completion of the transaction is expected in the fourth quarter, subject to antitrust approval and other conditions.

As of Aug. 14, US$1 was equivalent to 13.31 South African rand.