South Africa's largest insurer, the Sanlam Group, has announced its acquisition of a 22.8% stake in Saham Assurance Morocco, for ZAR1.98bn ($137.1m).
On completion of the deal, Sanlam will increase its stake in the Moroccan insurer from 61.7% to 84.5%.
The announcement of the acquisition is in line with Sanlam's move to search for opportunities elsewhere in Africa because of slow growth in the South African market.
The transaction is subject to regulatory approval from the appropriate Moroccan and South African authorities. The deal is expected to be completed by the end of the third quarter of this year.
Sanlam says that it will purchase the stock from its Moroccan partner and business mogul Said Alj and two entities related to him. As part of the deal, the sellers had agreed to reinvest 50% of the proceeds to acquire shares in Sanlam on the open market in the next few months, which would be held for a minimum of two years, Sanlam says.
Sanlam paid $1.1bn to acquire the remaining 53.37% stake in Moroccan insurance firm Saham Finances in 2018 that it did not already own. Saham Finances is a pan-African insurer with a presence in more than 30 countries across the continent. Saham Finances is a majority shareholder of Saham Assurance Morocco.