MMI Holdings Limited (MMI) has announced the acquisition of the remaining 51 per cent of Momentum Life Assurance Namibia Limited (Momentum Namibia) from FNB Namibia Holdings Limited (FNB Namibia). MMI will consolidate Momentum Namibia into Metropolitan Namibia, housed under Metropolitan International, a division of MMI. The acquisition of 51 per cent shareholding in Momentum Namibia has been approved by the Namibian authorities. The acquisition is effective as of 1 July 2012.
MMI Group CEO Nicolaas Kruger says, “This acquisition is an important milestone in the integration process of MMI’s Namibian operations. Momentum Namibia and Metropolitan Namibia both have an equally strong presence and together they have the potential to be a financial services leader in Namibia.”
MMI will inject N$350 million into its Namibian operations to finance this acquisition, which also includes the consolidation of Momentum Namibia’s asset management and property companies into Metropolitan Namibia. Once the transaction is concluded, Metropolitan Namibia (including Momentum Namibia) will have an embedded value of approximately N$1.3 billion.
Mervyn Cookson, CEO of Metropolitan International says, “We are very excited about the growth opportunities in Namibia and this transaction creates the perfect platform for us to grow our presence even further.”
Metropolitan Namibia recently renewed their black economic empowerment (BEE) transaction with Namibian BEE partners, Pinnacle Business Investments Limited (Pinnacle). Currently the company has a 79 per cent Namibian shareholding, with Pinnacle holding 21 per cent. “Our presence in Namibia is a long-term one and economic development and sustainable growth are strategically important to the economic and social relevance of our business,” concludes Cookson.