MultiChoice, a major African media company, and Sanlam, a South African insurance and financial services provider, have teamed up. Sanlam is set to acquire 60% of MultiChoice’s insurance business, NMS Insurance Services (NMSIS). This deal also includes a long-term plan to offer more insurance and financial services to MultiChoice’s African subscribers.
Sanlam will pay MultiChoice R1.2 billion upfront, with a potential bonus of up to R1.5 billion based on how well NMSIS performs by the end of 2026. This announcement came after Sanlam reported a 16% rise in earnings for the first quarter of 2024, thanks to better investment returns. After the deal, MultiChoice will retain a 40% stake in NMSIS and will continue investing in it, using the proceeds for its working capital.
This partnership will allow Sanlam to offer financial products to MultiChoice’s customers, using MultiChoice’s established payment and engagement systems. Sanlam plans to explore opportunities outside South Africa through SanlamAllianz.
Sanlam Group CEO Paul Hanratty and MultiChoice CEO Calvo Mawela are optimistic about this collaboration, seeing it as a chance for growth and market expansion. NMSIS, which has provided insurance for MultiChoice’s DStv brand for 20 years, will benefit from Sanlam’s resources, expertise, and technology to expand its product range and presence across Africa. Sanlam will manage NMSIS operations through its Sanlam Fintech division.
The deal still needs approval from South African regulatory authorities. Additionally, MultiChoice Group might soon be acquired by the French media company Canal+, which already holds over 40% of MultiChoice and is in talks to buy the company for R35 billion.
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