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Sanlam to list despite crash
INVESTMENT
SANLAM is going ahead with its demutualisation despite the stock market crash, which may have a significant effect on its market capitalisation, the amount policyholders receive and its economic impact. Chairman Marinus Daling says Sanlam is proceeding with its demutualisation, which he would rather have behind him than still in prospect. "Clearly the state of the markets is uncertain, but it is our full intention to continue and to finish it this year." Daling says the effect on the economy is unlikely to be what was expected. Estimates have put the positive GDP effect of demutualising Sanlam and Old Mutual at about 1% over two years. A Fleming Martin report said about R30-billion was expected to find its way back into the economy as policyholders cashed in their shares and spent the windfall. The average windfall per policyholder was put at R11 000. These estimates would have to be re-evaluated in the light of the market, high interest rates and a possible recession. A market source says that the market crash is not as important to Old Mutual, which only plans to list next year. By the time it lists, the situation could be very different.
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