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September 16, 2008

Deal Alert: South Africa's Sanlam Group invests $50-M in SMC Group

Extracts from Press Release:

India’s fourth largest securities brokerage house, SMC Group (“SMC”) has announced today that it had entered into joint venture agreements (JV) with Sanlam Investments, the investment arm of South African financial services giant, Sanlam Ltd. The agreement between the parties will see the setting up of two new businesses in India – a wealth management company and an asset management company.

The deal was made possible through an acquisition into the SMC group of companies, including warrants; which will ultimately create a 5% equity stake for Sanlam Investments in SMC and its two flagship companies – SMC Global Securities Limited & SAM Global Securities Limited. The total financial outlay by Sanlam Investments on this joint venture with SMC, as the warrants are exercised and the new businesses are capitalised, is expected to be upwards of US$50 million.

Sanlam Investments is the investment arm of South Africa’s leading financial services group, Sanlam. Sanlam Investments comprises 14 specialised investment management businesses each of which is a leader in its area. Key businesses include, Sanlam Investment Management, which is the group’s asset manager and Sanlam Private Investments, the private client business.

Singhi Advisors acted as exclusive advisors for the SMC Group.