afrol News, 17 September - Millennium India Acquisition Company, Inc. (MIAC) has announced today that SMC Group has entered into joint venture agreements with Sanlam Investments, investment arm of South African financial services firm, Sanlam Group.

The agreement calls for setting up two new businesses in India, a wealth management company and an asset management company, which according to reports will be well placed to take advantage of massive growth opportunities in India.

Founded in 1918, Sanlam Group is the second largest listed financial services group in South Africa, with a market capitalisation of $7.7 billion (December 2007), and with total assets under management and administration of $77.8 billion.

SMC Group chairman and managing director S.C. Aggarwal, said, "I am as elated as all my colleagues in SMC Group and Sanlam Group are, about this landmark deal. SMC is currently fourth largest IPO distributor in retail category in India and we are also fourth largest in terms of trading terminals."

Mr Aggarwal said their customer base exceeds 400,000, adding that it is growing at 10,000 new accounts per month.

"Following this joint venture, Indian financial services space will see further rise and transformation of SMC from our position as one of largest securities brokerage firms into a well diversified financial company, with enormous global reach and intellectual know-how in line with international best practices," he was quoted as saying.

He noted that deal was made possible through an equity acquisition into SMC group of companies, including warrants, which will ultimately create a five percent equity stake for Sanlam Investments in SMC Group.

Total financial investment by Sanlam on this joint venture with SMC, as warrants are exercised and new businesses are capitalised, is expected to be in region of USD 47 million.

Chief executive officer of Sanlam Investments, Johan van der Merwe, says, \"this is first step in our India investment strategy and a springboard for further expansion into continent."

He adds, "For us it is a bold step into one of biggest markets in world and a transaction that is in line with our international expansion strategy of furthering our business scope into promising markets outside of South Africa. SMC is a young and vibrant business with a large client base catering to all classes of investors."

Apart from South Africa, Sanlam Group has offices and businesses elsewhere in Africa in Botswana, Zambia, Ghana, Tanzania, Kenya, Nigeria and Namibia as well as in United Kingdom, New York, Switzerland, Luxembourg, Dublin, India and Australia.

Group employs about 11,000 people, excluding advisors, across these countries.

By staff writer

© afrol News

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