Brimstone Investment Set to Acquire Lion of Africa Insurance

July 12 - In 1999, Lion of Africa Holdings was founded as a joint venture between Brimstone Investments, Lion, Guardian National Insurance and Commlife Holdings Limited.

Guardian was acquired afterwards by Santam and continues to operate as short term insurance group.

Towards the end of last year, Brimstone acquired Santam's 35% share in Lion of Africa Holdings, meaning that the group now held 74% interest in the venture.

Last week, it was announced that Brimstone would be purchasing Commlife's remaining 26% interest in the company, bringing 100% of LOAH under its wings.

The purchase consideration is reported to be R53,272 million.

Brimstone said in a statement: "Brimstone regards Lion as a strategic and quality asset, with good growth potential. Following a review of its investment portfolio, Brimstone concluded that it should endeavor to acquire the remaining 26% interest in Lion, as this would allow Brimstone to better leverage the asset, rationalize capital management synergies within the group, and explore related opportunities in the insurance industry. Brimstone therefore engaged in negotiations with Commlife, which resulted in the conclusion of the agreement."

The group added that through his involvement with Brimstone as executive deputy chairman and as chairman of Lion, Fred Robertson, Commlife controller, will continue to play a major role in the development and growth of Lion."