Home | Business | SIDC, ASSOPT ACQUIRES AON’S E28M SHARES

SIDC, ASSOPT ACQUIRES AON’S E28M SHARES

Font size: Decrease font Enlarge font

MBABANE – The Swaziland Competition Commission (SCC) has approved acquisition of AON Holdings B.V.’s 60 per cent shareholding in AON Swaziland (Pty) Ltd. 


The acquiring firms of the shareholding valued at E28 million were the Swaziland Industrial Development Company Limited (SIDC) and AON Swaziland Staff Share Ownership Plan Trust (ASSOPT).


Chief Executive Officer (CEO) Thabisile Langa explained that the commission considered products of the merging parties in Eswatini and concluded that the relevant market was provision of short-term insurance broking, reinsurance and pension fund administration services in Eswatini.


Clarified


Langa clarified that analysis revealed that there were no overlaps between the activities of merging firms in the relevant market and as such the transaction was categorised as a phase one.
“As a result of the transaction, SIDC and ASSOPT will attain the 60 per cent shares that were owned by Aon Holdings in AON post-merger. They will each attain an additional 30 per cent shares to their current holdings in AON.


‘‘This will result in SIDC having 45 per cent shares and ASSOPT having 39 per cent shares in AON post-merger while the shareholding of the Government of Eswatini in AON will remain unaltered at 16,” said Langa.


The SCC CEO said the transaction was merely a change of shares ownership in the target firm as the acquiring firms were replacing one of the shareholders (Aon Holdings) which was exiting its ownership of AON.


Post-merger


“As a result of the transaction, Aon Holdings will relinquish its holdings in AON, and SIDC and ASSOPT have acquired Aon Holdings’ shares in AON post-merger,” Langa explained.   
Langa added that the commission concluded that the market shares in the relevant markets, market concentration, countervailing power and barriers to entry would not be affected hence the transaction was unlikely to result in the substantial lessening or prevention of competition. The transaction was approved without conditions.


SIDC CEO Phiwayinkhosi Ginindza said they were grateful that the transaction had been approved by the commission.


Investment


“We considered the shares acquisition as a viable investment when taking into account the fact that AON has been a profitable business,” said Ginindza.   
SIDC is a development finance company which was incorporated by the Government of Eswatini in 1987 as a joint venture between the government of the Kingdom of Eswatini and major International finance institutions (The DEG of Germany, CDC of UK, FMO of Holland, Proparco of France and IFC (a division of the World Bank).

Comments (0 posted):

Post your comment comment

Please enter the code you see in the image: