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Johannesburg – Hollard’s bid to buy Regent Insurance and
Regent Life Assurance has been approved, although with conditions.
buying these units from the Imperial Group.
The purchase price was not disclosed.
Hollard operates in the insurance sector through subsidiaries
that provide life and general insurance products and services to the insurance
sector.
The Regent Group offers short-term and long-term
insurance policies and non-insurance products in SA, which comprises life
insurance products, travel insurance products, car and home insurance products
and commercial vehicle insurance.
In terms
of the conditions set by the Tribunal the merging parties may not retrench any
employee for a period of three years, save for certain potentially affected
employees as defined in the conditions.
Regent Group, Hollard Life and Hollard Insurance shall
ensure that none of their directors are appointed to the board of directors of
MotoVantage or otherwise be a member of the management team to prevent an
exchange of information between the companies, the Tribunal notes.
Read also: Imperial to sell interests in Regent to Hollard Group
Hollard Holdings will be entitled however to appoint a
director to the board of directors of MotoVantage, as long as that director is
not involved in the operation and strategy of the VAPS businesses within the
Regent Group, Hollard Life and Hollard Insurance, it says.
The conditions will automatically terminate after 7 years
from the approval date or upon fulfilment by the parties of their obligations,
it adds.
