Liberty Health Eyes Namibia

November 18 - The Managing Director of one of Nambia's largest health insurance companies, Prosperity Health, has confirmed that he has been in talks with South Africa's Liberty Life insurance company over a possible acquisition deal.

According to Kobus Struwig, who, together with his brother Bertus, owns Prosperity Life, said that talks have been ongoing for quite some time now. "We have been talking for the past six months," he said.

While none of the sides will release cost figures, a source in South Africa said that there is still a great par between what the brothers are asking and what Liberty Life is prepared to offer. The Struwig's want N$400-million, while Liberty is only willing to pay half that amount.

The acquisition deal is part of Liberty Life's plan to expand into the rest of Africa and Prosperity is seen as a particularly good buy because it already has successful operations in twelve African countries.

Struwig said: "They want to expand into Africa. And we have the footprints in the continent with our fifteen years experience in the business. They approached us at the beginning of the year and at first we did not take the offer seriously, but now we are talking."

Prosperity runs several divisions, and Liberty Life is seeking to purchase only its health and insurance units. The entire company, with all the divisions, is worth around N$800-million, according to an evaluation recently carried out by PriceWaterhouseCoopers.

The brothers plan to possibly use the sale of their health insurance company to fund the creation of a reinsurance company in Nambia.