Aon offers to buy Glenrand M.I.B

Staff Writer | Tuesday December 14, 2010 00:00

 

Aon SA, which is a leading risk management, insurance brokerage and actuarial consulting organisation, is a subsidiary of NY Stock Exchange-listed Aon Corporation that is also the majority shareholder in Aon Botswana.

According to a statement released by Aon Botswana's Marketing and Communications manager, Monty Robert, the offer of R2.00 per Glenrand MIB ordinary share plus R24 million payable to the BEE shareholders places a value of approximately R523 million on the proposed transaction.

'A further amount of 30 cents per share, or approximately R75 million, will be in an Escrow account and these funds will be released, pending and conditional as the final outcome of a legal dispute dating back to 2006,' says the staement.

'Subject to the necessary approvals by the Securities Regulation Panel, the shareholders of Glenrand M.I.B, the Competition Commission, as well as various other regulatory approvals, the transaction will make Aon Risk Solutions a leading global risk broker in its sector of the financial services market.'

In Africa, it will have offices in 32 towns and cities throughout the continent.

According to the Managing Director of Aon Botswana, Thapelo Matsheka, 'this transaction is consistent with Aon's position in the market and aims to enhance the pool of resources that we bring to bear on the quality of service we deliver to clients.'

Said the CEO of Aon sub-Saharan Africa, Anton Roux: 'The proposed acquisition will elevate Aon's position in the local market and provide clients with a global network and top talent while offering additional economies of scale in certain niche segments.

'Glenrand M.I.B.'s strong presence in the Botswana market is a natural complement to Aon's dominant market share in the country.' Glenrand MIB will add around 15, 000 corporate and commercial clients to Aon - including many of the JSE's blue-chip companies - as well as over 60, 000 personal line clients.

Glenrand M.I.B.'s existing operations in sub-Saharan Africa will strengthen Aon's network which together span 14 countries (excluding correspondents) across the region.

If the acquisition is approved, Glenrand MIB's client will have immediate access to Aon's global network spanning more than 500 offices in 120 countries across all business lines, including access to Aon's global broking centres in London, Singapore and Bermuda and its reinsurance markets via Aon Benfield, the world's leading reinsurance intermediary.

Aon Hewitt will provide the full suite of human capital consulting and outsourcing services.

'A key factor in pursuing this acquisition was the similarity between our corporate cultures and processes,' the Aon Botswana statement continues.

'The combination of experienced teams and superior service levels characterises both operations and has generated strong customer loyalty.

'The integrated entity will build on these strengths. By combining our branch and sub-Sahara office infrastructure, we will be able to reach more clients more effectively to ensure that we deliver distinctive client value.

'This acquisition will improve (the) offering of a comprehensive range of risk management solutions as well as a full suite of actuarial services, employee benefit products and consulting services to our extended client base in Botswana and other sub-Saharan Africa business units.'

Glenrand MIB shareholders are expected to vote on the acquisition in due course. Once all approvals are obtained, Glenrand M.I.B will de-list from the JSE.

At the end of this transaction, Aon will combine the two entities under the Aon brand.