By: Hollard Insurance Group
The Hollard Insurance Group, South Africa’s largest independent insurer, have announced the disposal of its stake in Cedar Employee Benefits to NMG Benefits, the South African arm of the international NMG Group.
NMG’s CEO, Jacky Mathekga is delighted with the outcome and said, “Cedar is a profitable and very well managed employee benefits business that provides valuable services to retirement fund and healthcare clients throughout South Africa. I look forward to welcoming the Cedar management and all its employees into NMG, and to working together for the benefit of all our customers.”
The combined NMG Benefits and Cedar businesses will have over 1,000 corporate clients, with some 450 staff looking after around R200 billion in retirement fund assets. This makes NMG the second largest employee benefit operation in the southern hemisphere.
While Hollard’s announcement that it would dispose of Cedar attracted significant interest, the group chose a structured transaction with NMG to achieve its strategic objectives of facilitating transformation and encouraging the development of Black industrialists on the disposal of assets. The structure sees Hollard providing Mathekga with funding to enable his acquisition of a larger stake in the business.
Says Hollard CEO Saks Ntombela, “We acquired the Cedar business as part of the larger R1.8 billion Regent transaction. However, the Cedar offering is not core to our business strategy, so we decided to dispose of our stake in a way that balanced our transformation objectives with financial impact. Our shareholders strongly supported this approach and we look forward to seeing NMG continue to grow and thrive under Jacky’s leadership”.