Tokio Marine Holdings Inc. announced that it will acquire 22.5% stake in Hollard Holdings (Pty) Ltd. and Hollard International for about 5 billion South African rand, confirming an earlier report.
The acquisition will take place through the subscription of new shares in cash.
The deal expands the Japanese company's operations in South Africa and neighboring countries. It also boosts the strategic partnership between the involved entities, which have a life insurance joint project in Indonesia.
The transaction is expected to close at the end of 2018 or early 2019, subject to regulatory procedures.
Hollard Holdings' main location is in South Africa, while Hollard International operates in Namibia, Botswana, Mozambique, Ghana, Lesotho and Zambia.
As of Sept. 6, US$1 was equivalent to 15.35 South African rand.