MultiChoice Group is set to receive $63 million in cash by the end of November 2024 following the sale of its insurance business, NMS Insurance Services (NMSIS), to Sanlam Life, a subsidiary of Sanlam.
In a joint statement on Monday, MultiChoice and Sanlam confirmed that all conditions for the transaction, including approvals from the Competition Tribunal and the Prudential Authority, have been met.
Sanlam agreed in June to acquire a 60% stake in NMSIS. The deal also includes a long-term commercial partnership to expand insurance and financial services across MultiChoice’s extensive subscriber base in Africa.
“The transaction will take effect on November 30, 2024, upon which MultiChoice will receive an upfront cash payment of $63 million for its stake in NMSIS.
Additionally, a performance-based earn-out, valued at up to $79 million, may be paid by December 31, 2026, depending on future performance,” the companies disclosed.
When the deal was first announced in June, the companies emphasized the strategic value of the partnership.
Sanlam’s expertise in insurance and financial services, coupled with its presence across Africa, will enable MultiChoice to enhance its offerings and better address the needs of its clients.
This transaction represents a significant step for MultiChoice, leveraging Sanlam’s financial services network to integrate and expand into new markets. Meanwhile, the upfront payment strengthens MultiChoice’s financial position, allowing for further investment into its core business areas.
The partnership underlines a broader strategy by both companies to tap into Africa’s growing demand for diversified financial solutions, utilising MultiChoice’s subscriber reach to scale Sanlam’s services effectively.
