In 2004, the Ubuntu-Botho deal resulted in a broad-based black empowerment consortium buying an 8% shareholding in Sanlam in what was to become one of the most far-reaching black empowerment transactions to date. The deal brought together various stakeholders that would empower people, organisations and small businesses at even the most rural level, through access to capital and business expertise, and through helping them grow their businesses by making use of a network of cross-selling opportunities.
The success of the venture has been remarkable – while the Ubuntu-Botho deal has contributed to a significant increase in Sanlam's share price, this far-sighted venture has helped the Group fast-track its transformation into a truly representative South African company.
In December 2013, the initial 10-year contractual period of the transaction with Ubuntu-Botho ended, with a final total of 66.5 million deferred shares qualifying for conversion to ordinary shares. The deal created value of about R15 billion, making it arguably one of the most successful transactions of its kind in South African history. Agreement was reached to extend the partnership with Ubuntu-Botho into the future.