Immediate gains

News of the Ubuntu-Botho deal was extremely well received. It contributed to a significant increase in Sanlam's share price, which translated into a considerable capital gain for the new shareholders within two years.

The net asset value of each provincial company as at 17 March 2005 was R148,61 per share, totalling R14,8 million at 8% shareholding in Sanlam. These companies however have the option of increasing shareholding to 12%, which will raise the value of each company to R29,2 million.