Imperial Holdings Ltd., owner of South Africa’s biggest car dealership network, agreed to sell its Regent Insurance unit to Hollard Insurance Co. Ltd. for 2.3 billion rand ($164 million).
“While the business of Regent has grown strongly since its establishment, a large, fast-growing portion of Regent’s revenue and profits are unrelated to the Group’s core vehicle and logistics businesses,” the Johannesburg-based company said in a statement on Tuesday.
Regent sells insurance policies in South Africa, Botswana and Lesotho. Proceeds from the sale will go toward expansion and reducing short-term debt, Imperial said.
Imperial shares gained 0.7 percent to 171.23 rand as of 12:22 p.m. in Johannesburg, valuing the company at 34.6 billion rand.