JOHANNESBURG, March 28 (Reuters) - South Africa’s Sanlam has raised 5.7 billion rand ($490 million) from selling new shares to help fund its joint acquisition of Moroccan company SAHAM Finances, the insurer said on Wednesday.
Sanlam said it placed 65.5 million new shares, or roughly a 3 percent stake, through an accelerated bookbuild process to institutional investors for 87 rand per share, representing a discount of 5 percent to its closing price on Tuesday.
Sanlam, along with rival South African insurer Santam Ltd , said earlier this month that it will buy the rest of SAHAM Finances for $1 billion, as part of a plan to become a pan-African insurance group.
It said the proceeds from the placing will be used to fund that acquisition.
Subject to approval by the Namibian Stock Exchange Limited, the placing shares will also be listed on the Namibian Stock Exchange.
J.P. Morgan and Deutsche Bank are acting as joint global coordinators and joint bookrunners.
$1 = 11.6443 rand Reporting by Nqobile Dludla, editing by Louise Heavens