Zurich announces the sale of a 10% stake of SA Eagle in support of Black Economic Empowerment in South Africa
Johannesburg, 13 April 2005
Zurich Financial Services Group (Zurich), the majority
shareholder of SA Eagle Insurance Company Limited (SA Eagle)
has signed an agreement to sell a 10% stake of the total
issued share capital of SA Eagle to Royal Bafokeng Finance
(Pty) Limited (RBF), a company wholly-owned by the Royal
Bafokeng Nation (RBN). In line with the Financial Sector
Charter, the BEE transaction highlights issues of ownership
and equity in the short term insurance industry.
As part of the agreement, RBF is entitled to nominate one
director to the SA Eagle Board and it has an option to increase
its shareholding in line with the ownership requirements of
the Financial Sector Charter. Moreover, SA Eagle has undertaken,
in line with the terms of the Charter, to fund specific projects
nominated by RBF in areas such as corporate social investment,
enterprise development and empowerment financing, subject to
approval by the SA Eagle Board.
SA Eagle Managing Director, Nick Beyers comments: “We
are enthusiastic about the transaction with Royal Bafokeng
Finance, which reflects the commitment of SA Eagle and Zurich
to Black Economic Empowerment initiatives.”
Beyers adds: “We see in Royal Bafokeng Finance a business
partner with whom we can collaborate to deliver on the BEE
objectives as set out in the Financial Sector Charter.”
Kgosi Leruo Molotlegi, King of the Royal Bafokeng Nation,
said: “The Royal Bafokeng Nation is delighted to be associated
with Zurich Financial Services and SA Eagle. The acquisition
of this interest in a leading financial services company is
an important step in broadening the community’s access
to cost-effective financial products and increasing our involvement
in the national economy.”
Notes to the Editors: SA Eagle is a majority-owned subsidiary of Zurich
Financial Services, an insurance-based financial services
provider with a global network. Zurich is headquartered in
Zurich, Switzerland, and has offices in more than 50 countries.
SA Eagle forms part of Zurich’s International Businesses
Division, which provides a key presence in potentially high
growth markets.
The Royal Bafokeng Nation is a community of approximately
300 000 people based in the Rustenburg valley region in North
West Province in South Africa. The fortunes of the Royal Bafokeng
Nation have historically been closely linked to the mining
industry. Royal Bafokeng Finance was established in
2004 in order to reduce its reliance on mining and to increase
its participation in the national economy. The focus of Royal
Bafokeng Finance is to hold the non-mining commercial assets
of the Royal Bafokeng Nation that will provide meaningful diversification
benefits.
