Financial Services Editor

SANLAM has promised to disclose further details early next month on its empowerment deal with Ubuntu-Botho Investments, the consortium led by African Rainbow Minerals' Patrice Motsepe, which is to buy an initial 10% stake in Sanlam.

This comes after Sanlam tied up the R2,2bn deal in early December last year, becoming the first of SA's large life assurers to do an empowerment transaction at holding company level.

Motsepe, in his first venture outside the mining sector, is to put R200m in cash upfront to help fund the consortium's purchase.

Last week Sanlam and Ubuntu signed the necessary legal agreements. The deal awaits approval from regulators and shareholders, and the empowerment consortium's funding arrangements have yet to be finalised.

Sanlam has said that transfer of the full 10% shareholding will be linked in part to its performance.

Ubuntu becomes entitled to all of its shares only if the life assurer's new business over the next few years exceeds the level it could have expected to achieve on its own, without empowerment partners.

Sanlam, which is due to report its 2003 year-end results on March 4, said yesterday it would give details of the financial effects of the deal on March 2, when it would send a circular to shareholders.

The life assurance reporting season kicks off on Monday with Old Mutual, which is due to report its year-end results just after its 53%held banking subsidiary Nedcor does the same.

Then banking and insurance group FirstRand, which includes Momentum, reports interims on March 2, followed by Liberty Group year-end results on March 3 and Sanlam the following day. Metropolitan wraps up with results in the second week of March.

Feb 17 2004 07:36:12:000AM Hilary Joffe Business Day 1st Edition