The insurance sector tycoon of South Africa, Sanlam has entered into a stake deal with the financial service organization Shriram. As per the deal, Sanlam has purchased 26% of the stake of the Indian Company at the cost of2 billion rand.

According to the information revealed by Sanlam CEO Johan van Zyl, the Company has not only bought the stake, but has also bought back the shares to the Company after paying out an amount of 944 million rand.

Mr. Zyl further revealed, with the deal with an Indian Company, Sanlam intended to enter the market of India, where the insurance sector was at a quite lower position and the Company’s future prospects were strong.

As per G. S. Sundararajan, Managing Director of Shriram Capital, “They weren't quite sure if they would want to venture outside the insurance space”. The total expenditure made by Sanlam stood at 2,000 crores for the improvement of insurance shares and cash component. The Company Sanlam will be entitled with 26% of the shares of the company and Shriram will own 100% of the shares.

Both the companies were already in a deal of life and non life insurance sector, the recent business deal was commenced to strengthen their bonding.