JOHANNESBURG - Shares in short-term insurer Santam have surged.
The stock jumped 19 percent after majority shareholder Sanlam announced plans to buy out the company’s remaining shareholders and delist Santam.
Sanlam currently owns nearly 63 percent of Santam and has offered R505 in cash for each remaining share.
The offer is above Santam’s previous trading price, sending the stock higher after the announcement.
Sanlam says consolidating its ownership of Santam will simplify the group’s structure and remove constraints associated with maintaining a separate listing.