South African-based retirement fund manager, Alexander Forbes, has sold a 51 per cent stake to Kent Holdings as it prepares to fully exit from Uganda.
In a joint release, Mr Bongo Mokoena, the Alexander Forbes Emerging Markets Limited chief executive officer, said the group had sold 51 per cent of its Ugandan business.
“On July 2, 2019, a sale of shares agreement was executed in terms of which, [Alexander] sold 51 per cent in Alexander Forbes Financial Services Uganda to Kent Holdings, a co-shareholder in Alexander Forbes Financial Services Uganda Limited,” the notice reads in part, noting that the sale of shares agreement was subject to fulfilment of conditions.
Resultantly, Alexander Forbes Emerging Markets Limited, which operates its Ugandan business under Alexander Forbes Financial Services Uganda, will now be known as Zamara Actuaries Administrators and Consultants (Uganda).
The company, in May announced its exit from Uganda following a strategic review of its business on March 26, 2019.
Alexander Forbes said in May that it had conducted a strategic review of its businesses across Africa through its advice-led solution platforms thus resulting in an exit from its current in-country operations in Uganda and Zambia.
Mr Dowie de Villiers, the Alexander Forbes Group chief executive officer, said the company will conduct an orderly exit from Uganda and will maintain levels of service and advice to their clients.
Alexander Forbes is the largest provider of retirement fund administration services in Uganda, providing services in comprehensive benefit administration, accounting, consulting and actuarial services.
In its annual results for the period ended March 31, Alexander Forbes revealed that it was faced with internal challenges, noting that savings and retirement markets were under pressure, resulting in lost business in some segments.
South Africa, the company said, will remain its primary market and core focus but exit sub-scale markets such as Uganda and Zambia.
Seeking to reduce:
Over the next two years, Alexander Forbes will seek to reduce the surplus capital held which will be done through restructuring and selling its insurance businesses.
With a total asset base of more than $2.8b under administration and 350 pension administration clients, Zamara is a specialised financial services group providing advice and administration solutions to individuals, corporates, states and retirement funds.
In 2003, the firm became part of the Alexander Forbes Group before adopting the new corporate identity Zamara in 2017.