Times Of Swaziland: VUNANI ACQUIRES 67% MOMENTUM METROPOLITAN HOLDINGS

VUNANI ACQUIRES 67% MOMENTUM METROPOLITAN HOLDINGS
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BY KWANELE DHLADHLA  on 04/12/2019 01:18:00


MBABANE – Vunani Limited (Vunani) has, together with the current Metropolitan
Life Swaziland management, acquired Momentum Metropolitan Holdings Limited’s
(MMH) 67 per cent shareholding in its Eswatini insurance businesses.
In a press release issued yesterday, the shareholders were advised that the
transaction has become effective and that the purchase consideration had been
paid to Metropolitan International Holdings Proprietary Limited and all
conditions precedent had been met.
It was disclosed that MetLife Swaziland had evolved into one of the leading
insurance providers in the region with assets in excess of E675 million.
The transaction sees Vunani, a financial services group; expand into life, short
term and health insurance in partnership with the highly experienced local
management team. It was pointed out that the transition plan would include a
rebranding exercise for both MetLife Swaziland and MOMS. “MetLife
Swaziland’s proven strong cash generation, and well-established recurring
premium business, complement Vunani’s business model and will augment the
group’s growth strategy,” said Ethan Dube, Vunani’s Chief Executive
Officer (CEO).
It was stated that MMH has committed to working with the consortium to
facilitate the smooth transition of operations and to ensure that the best
interests of all key stakeholders in Eswatini, including clients, business
partners, staff, and regulators are well taken care of during the transition
period.
It was further clarified that the remaining 33 per cent of MetLife Swaziland
would continue to be held by Eswatini Development and Savings Bank
(EswatiniBank), which originally invested in 2010.
Momentum Metropolitan Holdings Limited (MMH) has a number of insurance
operations across Africa.  MMH announced, in September 2017, a reset in
priorities to enable improved performance and future growth.  This included an
increased focus on successfully growing core business in South Africa; and
exiting certain operations outside South Africa.  The company has therefore made
a strategic decision to exit a number of African countries.
Profitable
Eswatini, although highly profitable and strongly cash generative, fits into
this category. MMH’s investment in Eswatini consists of a 67 per cent
investment in Metropolitan Life Swaziland Limited (MetLife Swaziland) which in
turn owns 100 per cent of Momentum Insurance Swaziland Limited (MOM).
It was explained that the management of MetLife Swaziland approached MMH to
execute a management buy-out, (MBO) given their strong track record of growth
and confidence in the prospects of the business with the appropriate future
partner. The press statement also mentioned that Vunani was then approached by
the management team to advise them on the MBO and assist in the raising of
capital.
The subsequent interactions and due diligence motivated the formation of a
consortium of Management and Vunani for purposes of acquiring MMH’s stake in
MetLife Swaziland.
MetLife Swaziland offers long-term life products and retirement funds. Momentum
Insurance Swaziland Limited merged with MetLife Swaziland in 2010, offers
short-term insurance cover - both personal and corporate - and health benefits.