27four Investment Managers
4th June 2018
Intended Sale and Purchase of Prescient Life
We are pleased to announce that Prescient Holdings (Pty) Ltd (“Prescient”) has entered into a binding heads of agreement with 27four Holdings (Pty) Ltd (“27four”) regarding Prescient Life Limited (“Prescient Life”). The intended sale and purchase of Prescient Life is subject to due diligence, regulatory approval and board approval, but we expect the intended deal to be finalised by 1 August 2018.
In terms of the heads of agreement, it is intended that 27four will purchase 100% of the shareholding in Prescient Life from Prescient. Both parties are very excited about this transaction and believe that the transaction will not only enable 27four but also all of Prescient’s clients to offer competitive solutions to the market. 27four have ambitious plans to grow the Prescient Life book, and this growth will help generate a sustainable business that benefits from significant economies of scale. Prescient and 27four enjoy a strategic relationship which has resulted in, amongst achievements, the establishment of the jointly owned African Collective Investments (“ACI”) Management Company, and we are confident that this transaction will result in another successful venture.
“The acquisition of Prescient Life is seen as a key strategic development in providing access to the means of conducting business and delivering on 27four’s ambitious growth expectations. The acquisition will enhance 27four’s reputation as a leading Black participant within the sector and allow the company to leverage its position to further support the broader participation of Black people and Black-Owned companies within the sector,” says Fatima Vawda, Managing Director of 27four.
In terms of the intended deal, the Prescient group and its clients will continue to be able to make use of the Prescient Life licence to provide policies and life-pooled portfolios to policyholders at competitive pricing levels. We are in the process of finalising our proposed pricing levels for licence provision and administration and will provide further communication in this regard shortly.
All administration services in respect of Prescient Life will be performed by Prescient Fund Services (“PFS”) for a minimum of five years from the effective date of the sale. Prior to the sale, Prescient Life will transfer all its administrative staff from Prescient Life to PFS. Lameez Amlay will continue to lead the administrative team and will report to Iqbal Sirkot as the Chief Operating Officer of PFS. To this end, we expect no disruption to our clients and policyholders who will continue to interact with the same administrative team that has serviced them over the years.
For the sake of clarity, the sale of Prescient Life does not include the Prescient Retirement Funds (“the Funds”), which will be retained by Prescient. PFS will, subject to trustee approval, be appointed as the new sponsor and administrator of the Funds, and the Funds will continue to be administered by the same administrative team. 27four will be appointing executive staff to take over the management of Prescient Life. Daniel Acres will facilitate a smooth handover of the management of Prescient Life to 27four. Daniel Acres and Esmarie Strydom will exit the business in time to enjoy some time off and then pursue other opportunities.