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SANLAM SUBMITS OFFER TO ACQUIRE CONTROLLING STAKE IN AFROCENTRIC GROUP

Johannesburg, October 11 2022 – The AfroCentric Group announced today that Sanlam Limited has submitted an offer to acquire a controlling stake in the healthcare company.

Sanlam's relationship with the Group dates back to 2015, when it embarked on a strategic venture into the healthcare sector, choosing AfroCentric as a strategic partner. This partnership saw Sanlam Limited acquire a 28.7% share in ACT Healthcare Assets, which controls AfroCentric entities including the Medscheme medical scheme administration business and pharma businesses Pharmacy Direct and Activo. That stake is held through Sanlam Life Insurance, with AfroCentric Group holding the remaining 71.3%.

In this proposed transaction, Sanlam intends to acquire no less than 36.9% of AfroCentric shares at an offer price of R6 a share. In addition to this, Sanlam seeks to transfer its shareholding in ACT Healthcare Assets to AfroCentric in exchange for an equal (28.7%) shareholding in the AfroCentric Group as a whole. These transactions will result in a controlling shareholding in the AfroCentric Group, the most diversified healthcare group on the JSE.

AfroCentric Group CEO Ahmed Banderker said this is still subject to shareholder and regulatory approvals. However, he is encouraged by the offer and believes that this signals the emergence of positive move forward for the AfroCentric Group.

Through the transaction, Banderker said Sanlam will be able to integrate AfroCentric's product offering into its ecosystem, while AfroCentric will gain increased access to the wider Sanlam distribution network. AfroCentric's client base will also benefit from access to the overall Sanlam product offerings and vice versa.

"There is a great drive towards affordable and accessible healthcare in this country. Between Sanlam and AfroCentric, our offerings and capabilities combined can truly shape the future of South African healthcare," said Banderker.