Washington D.C., November 25, 2015—IFC,
a member of the World Bank Group, and the IFC African, Latin American,
and Caribbean Fund (IFC ALAC Fund), a $1 billion private equity fund managed
by the IFC Asset Management Company, have announced the successful exit
from their investment in Saham Finances (Saham), a subsidiary of the Saham
In 2012, IFC and the IFC ALAC Fund acquired an 18.75 percent stake in Saham.
During the investment period, IFC and the IFC ALAC Fund supported the company’s
ambitious growth strategy by facilitating strategic acquisitions in high
growth markets such as Angola, Kenya and Nigeria. Since the investment,
Saham has added 11 new subsidiaries and more than tripled its net income
base. IFC and the IFC ALAC Fund’s engagement have enhanced Saham’s strategic
and financial value and strengthened its corporate governance framework.
IFC and the IFC ALAC Fund are selling 100 percent of their shares in Saham.
Eighty percent of these shares will be purchased by South Africa-based
Sanlam Group while the remaining 20 percent will be purchased by the Saham
Group, Saham’s parent company. The Abraaj Group has also exited its shareholding
alongside IFC and the IFC ALAC Fund. The transaction is expected to close
during the first quarter of 2016, subject to regulatory approvals.
Saham has become one of the largest pan-African insurance groups, currently
operating 31 insurance and reinsurance subsidiaries in 26 countries in
Africa and the Middle East. The company is now the market leader in most
of the countries it operates in, with a network of over 650 branches, a
staff complement of more than 3000 people, and a consolidated turnover
of over $1 billion.
Commenting on the exit, Mouayed Makhlouf, IFC Director for the Middle East
and North Africa, said: “IFC is pleased to support this transaction, which
promotes South-South investments and partnerships across Africa.”
“Our investment and partnership with Saham have helped create a truly
regional leader in the African insurance market. We expect further dynamic
growth from Saham in the years to come,” said Gavin E.R. Wilson, CEO of
IFC Asset Management Company.
IFC ALAC Fund Co-Head Colin Curvey added: “Saham is well-placed to maintain
its market-leading status in high-growth markets in Sub-Saharan Africa.
We wish the company continued growth and success in the future.”
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence, to create opportunity where it’s needed most. In FY15,
our long-term investments in developing countries rose to nearly $18 billion,
helping the private sector play an essential role in the global effort
to end extreme poverty and boost shared prosperity. For more information,
About IFC Asset Management Company
IFC Asset Management Company LLC (AMC), a wholly-owned subsidiary of IFC,
invests third-party capital, enabling investors to benefit from IFC’s
expertise in achieving strong equity returns, as well as positive development
impact in the countries in which it invests. AMC has raised $8.7 billion
of capital across 11 investment funds. It manages the $1 billion IFC ALAC
Fund. For more information, visit www.ifcamc.org.
About the IFC African, Latin American, and Caribbean Fund
The IFC ALAC Fund is a $1 billion growth equity fund that invests alongside
IFC in equity investments in Sub-Saharan Africa, Latin America and the
Caribbean. It provides long-term growth capital for private enterprises
in these regions.