Friday, October 30, 2020

Momentum-Metropolitan merger: Business as usual

Metropolitan Botswana said on Monday that its proposed merger with another South African giant, Momentum, will have no effects on clients.

Diphuka Osman, the Marketing representative of Metropolitan said in an e-mailed statement that there have been enquiries following reports of the merger in South Africa.

“There are, therefore, no anticipated effects to Metropolitan Botswana staff and policyholders, and all stakeholders will be kept abreast of any changes and progress in the transaction as they unfold”, said Osman.

The merger will create one of the leading financial services groups on the African continent, of which Metropolitan Botswana would be a part.

It is expected that the move will expand the product offerings, target markets and growth prospects in life assurance, health, asset management and employee benefits of both entities, locally and elsewhere in Africa.

“A due diligence process has begun, after the successful completion of which the proposed merger will still be subject to approval by Metropolitan and FirstRand shareholders, as well as the relevant regulatory authorities”, she said.

Momentum is a wholly-owned subsidiary of FirstRand. Botswana Development Corporation (BDC) is shareholder of Metropolitan Botswana.

Osman revealed that the shareholder (BDC) and the regulator, Non Bank Financial Institutions Regulatory Authority (NBFIRA), are being kept informed of all developments.

It is expected that the merged entity will be renamed with effect from the date of implementation of the proposed transaction to reflect its new identity.

Both the Metropolitan and Momentum brand names will, however, continue to be used.
The two groups will operate separately and independently for the foreseeable future, with no changes to the way in which they do business in the short term.

“Metropolitan Botswana wishes to thank all its customers for their continued support and to assure all that we will be continuing to provide you with stable life insurance products and services, now and into the future” she said.

According to Business Day of South Africa, the proposed merger will be implemented by way of FirstRand selling the entire issued ordinary share capital of Momentum to Metropolitan, in consideration for which Metropolitan will issue new Metropolitan ordinary shares to FirstRand.

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