Imperial in talks with Hollard over sale of insurance businesses
Imperial Holdings has entered into exclusive negotiations with Hollard Insurance and an unnamed associated party over the possible acquisition of Imperial’s interest in the Regent Insurance and Regent Life Assurance businesses, which hold long- and short-term licences in motor-related and nonmotor insurance in South Africa, Botswana and Lesotho.
The group said in a statement on Thursday that, while Regent had grown strongly since its establishment, a fast-growing portion of its revenue and profits were unrelated to the group’s core vehicle and logistics businesses and enjoyed no strategic, competitive or financial advantage from Imperial’s ownership.
“The growth prospects and value of these unrelated businesses will be better advanced by owners with established capability and scale in financial services and insurance.
“Therefore, and consistent with its espoused strategy to invest in its core capabilities, Imperial has decided to dispose of the business and insurance licences of Regent, in a transaction structured to allow the group continued access to the income flows generated by the distribution of vehicle-related insurance and value-added products, through Imperial’s extensive dealership network,” it stated.
The proceeds from the proposed transaction would be invested in the expansion of the group’s core businesses, while initially reducing short-term debt.
Imperial added that the exclusivity period for the negotiations was three months and advised its shareholders to exercise caution when dealing in the company’s securities.
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