Sanlam Limited

Our client, Sanlam Limited ("Sanlam"), announced this morning that it has acquired a majority interest in Principal Investment Holdings ("Principal"), the UK-based private client wealth management business. Staff in the business will continue to hold a minority equity holding and Sanlam will acquire up to 86 per cent. of Principal for c. £35mlion.

Principal manages approximately £1 billion worth of assets on behalf of high net worth individuals, family trusts, charities and smaller corporate clients in the UK.

Sanlam is a leading financial services group in South Africa, listed on the Johannesburg and Namibian stock exchanges, with a market capitalization of c. £3.0 billion. The Group comprises a number of mutually dependent business entities focusing mainly, but not exclusively, on wealth creation and protection, investment management and ancillary financial services solutions for individuals and institutions. The group employs around 9,000 staff and 1,400 advisors.

The transaction arose from Canaccord Genuity's ongoing relationship with Sanlam both in the UK and South Africa.

The transaction is subject to regulatory approvals and completion is expected in March 2008.

Canaccord Genuity acted as sole financial advisor to Sanlam Limited.