PSG gets green light to purchase Absa's short-term insurance brokerage business
The deal will be effective from December 1, 2018.
PSG Konsult, the wealth and asset management unit of PSG Group, said it has met all conditions to its acquisition of a short-term face-to-face advisory insurance brokerage business from Absa Insurance and Financial Advisors Proprietary Limited.
PSG Konsult announced that “all conditions precedent” to the deal have been met and that the deal will be effective from December 1, 2018.
The deal was first announced in February 2018. The insurance brokerage business consists of 62 advisers and over 28 000 clients.
PSG Konsult said the insurance brokerage business will “seamlessly integrate into the PSG Konsult distribution network of PSG Insure advisers, enhancing PSG Insure’s footprint across South Africa.”
PSG Konsult said the acquisition falls below the threshold that requires disclosure in terms of the JSE Listings requirements.
“However, the PSG Konsult board deemed it appropriate to update shareholders on the outcome of the acquisition, in the interests of full transparency,” the company said in a statement.
When the deal was initial announced, Absa said the sale of the insurance brokerage business is part of the Barclays Africa Group’s (the bank’s then parent company) decision to optimise its insurance distribution channels. This was to respond, “efficiently to changing market conditions, technological advancements and increasing competition.”
Absa said the transaction does not extend to the Life and Investment Insurance brokerage and other insurance-related businesses such as, idirect, Absa Insurance Company or Absa Life Insurance.