Own Santam shares? Sanlam is offering R505 each. What happens next

Sanlam wants to buy every Santam share it doesn't already own for R505 cash each, then take the short-term insurer off the JSE. If you own Santam shares, you'll get a vote, and the circular with the full details is due around 3 November 2026 (Santam and Sanlam SENS announcement).

How much is Sanlam offering?

R505 per Santam share, paid in cash. According to the joint announcement, that is:

• 26.6% above Santam's closing price on 2 October 2026
• 25% above the 30-day volume-weighted average price
• 28.6% above the 90-day volume-weighted average price

Santam's share price jumped almost 16% to R460.79 on the day the offer was announced, 5 October (News24).

Sanlam already owns 61.9% of Santam. It first put the figure at 62.7%, then corrected it because some shares held in the group belonged to third parties. The price stayed at R505 (SENS erratum).

Do Santam shareholders get a say?

Yes. The deal is a scheme of arrangement under the Companies Act, so it needs at least 75% of the votes cast by eligible shareholders at a general meeting. Sanlam's own shares don't count in that vote (SENS).

The meeting is expected on or about 30 November (News24). Santam's independent board unanimously supports the offer and will recommend that shareholders vote yes (SENS).

If 75% approve, the scheme binds all eligible shareholders, including those who voted against it.

What if I don't want to sell?

Shareholders who formally object before the meeting and then vote against the scheme have appraisal rights under section 164 of the Companies Act. That lets them ask to be paid the fair value of their shares instead of R505 (SENS).

Sanlam can walk away if dissenting shareholders holding more than 3% of the eligible shares go on to exercise those rights. The scheme can also end up in court if 15% or more of the votes cast are against it (SENS).

The circular will set out the exact steps, dates and the independent expert's view on whether R505 is fair and reasonable.

When would the deal close?

Sanlam and Santam expect it to close in the first quarter of 2027 (News24). The longstop date is 31 March 2027, which can be extended to no later than 1 October 2027 (SENS).

Before then it needs approval from the Takeover Regulation Panel, the Prudential Authority, the Reserve Bank's Financial Surveillance Department and the JSE (SENS).

Sanlam Life will fund the payout from third-party funding, with a Standard Bank guarantee lodged with the Takeover Regulation Panel (SENS).

What happens to Santam on the JSE?

Once the scheme is implemented, Santam will be delisted from the JSE automatically, ending more than 60 years on the exchange (News24). Sanlam will also apply to end its listings on the Namibian Securities Exchange and A2X (NSX).

Sanlam says full ownership would cut duplicated listing costs and give it more freedom to move capital around the group (SENS).

Does this change my Santam insurance policy?

The announcement deals only with who owns Santam's shares. It says nothing about changing Santam policies, premiums or claims (SENS). Santam stays the insurer on your policy.