Sanlam Group to Increase Stake in Shiram Capital

January 7 - The South African Sanlam Group is expected to pick up 20 percent stake in the Chennai-based Shiram Capital.

The Shiram Capital is refusing to comment on the possible developments stating that they will not comment on "market speculation", however reliable sources are suggesting that this move is scheduled to take place.

Shiram Capital and Sanlam Group are already partnered in life and non-life business ventures.

This new proposal, which is waiting for regulatory clearance, will increase the ties between the two companies.

Chairman of the Shiram Group, Mr R. Thyagarajan, spoke of the "Sanlamisation" of Shiram Capital when he spoke at a press conference in June last year.

There are reports that Shiram Capital is looking to expand into foreign markets and it looks at if Thailand and Indonesia could be their first destination.

If the Sanlam-Shiram deal goes through, Sanlam would be the second foreign investor into Shiram Capital. It also holds shares in Shiram's two listed NBFCs ? Shiram City Union Finance and Shiram Transport Finance.

PE Fund ? formerly TPG (Texas Pacific Group) - had begun to pick up 20 percent of Shiram Capital already last year. The deal is reported to be in the final stages and the stake-take is pared to 15 percent.

Sanlam is the second largest insurer in South Africa following Old Mutual. It has a turnover of $6.3 billion. Shiram Capital is the holding company for the financial services companies of the Shiram Group.

These include Shiram Transport, Shiram City Union and the two insurance companies, Shiram Wealth Management and Shiram Insight Share Brokers.