Santam Ltd., South Africa’s largest property and casualty insurer, said it would buy back shares held by black-empowerment partner Central Plaza Investments valued at about 801 million rand ($67 million).
The company will buy the stock at 190 rand a share, a 13 percent discount to the 218 rand closing price on Wednesday, Johannesburg-based Santam said in a statement. The deal will allow the unwinding of a black empowerment transaction, the company said.
Santam said in a separate statement on Wednesday that 2.7 million of its shares held by Central Plaza were placed with institutional investors at 215 rand each, representing a discount of 1.4 percent from its closing price on Wednesday. Investec Ltd. is acting as the sole bookrunner to the deal.
Santam, controlled by the biggest South African-based insurer, Sanlam Ltd., also has operations in Zimbabwe, Malawi, Uganda, Tanzania and Zambia.