London Stock Exchange and JSE dual-listed global asset manager Ninety One is set to acquire all the issued shares in Sanlam Investment Management (SIM), while Sanlam Group will, in turn, receive a 12.3% stake in Ninety One, the group said in a joint statement issued on Sens yesterday.

Moneyweb reports that Ninety One’s share price initially strengthened almost 3% on the news, but by midday traded around 1% up. Sanlam’s share price also firmed around 1%.

The two financial services giants announced a ‘long-term relationship’ which will also include the following:

* Ninety One will be appointed as the primary active investment manager for Sanlam’s single-managed local and global products;

* Sanlam will appoint Ninety One as the permanent investment manager to manage assets for Sanlam Investments UK Limited, a wholly-owned subsidiary of the Sanlam Group

* Sanlam will serve as an anchor investor in Ninety One’s international private and specialist credit strategies that meet its investment requirements. SIM is currently wholly owned by Sanlam Investment Holdings in which the Sanlam Group has an effective 65%. The proposed transaction is subject to approval from shareholders and the regulatory authorities in SA, the UK, and any other applicable jurisdiction.

Full Moneyweb report

See also full Business Day report