Africa-Press – South-Africa. JSE-listed Conduit Capital has announced the sale of its subsidiary Constantia Insurance Company Limited (CICL), which was placed into provisional liquidation in September.
Conduit is planning to sell the entire issued share capital of Constantia Life and Health Assurance Company, under which CICL falls, to Gauteng-based Affinity Financial Services for R20 million.
The sale, which includes Constantia’s client database, is expected to take place in the first half of next year.
“The disposal is expected to reduce operating costs and generate sufficient cash flow for Conduit Capital to remain a going concern,” the group said in an update to shareholders on Wednesday.
Constantia was placed into curatorship in August and provisionally liquidated the following month after it failed to shore up its balance sheet.
This came after the Reserve Bank found it needed to hold a larger reserve of funds to meet its obligations to pay out policyholders. But Constantia was unable to find an investor willing to put in an estimated R450 million, leaving it at the mercy of the courts.
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