Sanlam and Absa today announced the conclusion of a transaction by which Absa will acquire a 100% shareholding in Sanlam Home Loans.
Sanlam Home Loans was initially established as a joint venture between Sanlam Life and Absa with each partner having a 50% shareholding.
Absa will become the sole owner of Sanlam Home Loans. The name of Sanlam Home Loans will be phased out gradually.
Mr Anton Gildenhuys, Chief Executive: SPF Actuarial, said this decision by Sanlam was prompted by the global financial crisis in 2008 and 2009 that resulted in securitisation becoming far less attractive as a funding model.
“Like various international entities that suffered under a similar funding strategy, the business model also proved unsustainable for Sanlam.
“Absa’s part ownership of Sanlam Home Loans and its administration and servicing of Sanlam’s home loan business made it logical for Sanlam to choose Absa to continue to service our valued clients’ home loans,” he said.
The transaction will have no immediate effect on Sanlam Home Loans clients or affect the terms and conditions of their home loans.
Luthando Vutula, managing executive for Absa Home Loans, said he is looking forward to welcoming the Sanlam Home Loans customers to the Absa Group.
“Absa Home Loans has been administering and servicing the Sanlam Home Loans book and this transaction will have minimal impact on the customers,” he said.
- Clients of Sanlam Home Loans have been informed by personal letter of this transaction and they will continue to have access to the Sanlam Home Loans Client Service Call Centre (0860122345) for changes to their home loans, further loan applications and enquiries. They can also make use of the e-mail response facility at
info@sanlamhomeloans.co.za.
Content within this section:
