Table of Contents
Key Points
- RBC acquires 5.01% of Discovery, investing R6.6 billion ($356.3 million), reinforcing global interest in South Africa’s financial services and insurance market.
- The acquisition aligns with Discovery’s growth strategy and solidifies RBC’s position as a key shareholder, enhancing investor trust.
- RBC’s latest acquisition signals an increasing international focus on top-performing South African firms.
Royal Bank of Canada (RBC), one of North America's largest banks, has acquired a significant stake in Discovery Limited, South Africa’s leading financial services and insurance company, founded by Adrian Gore.
The acquisition, executed through RBC’s asset management arm, RBC Asset Management Inc., was announced on Dec. 27 in a regulatory filing. This move reflects the increasing interest of global financial institutions in South Africa’s insurance and healthcare sector.
Discovery continues to attract investors
RBC's purchase of a 5.0146 percent stake, worth R6.6 billion ($356.3 million), complies with local regulatory requirements and underscores confidence in Discovery’s strong market position and long-term potential. This acquisition aligns with RBC’s strategy to invest in resilient companies, further emphasizing its belief in Discovery’s growth prospects.
Building on this momentum, the acquisition mirrors similar moves by other institutional investors, including Capital Group’s $250.4 million acquisition of a 5.0054 percent stake. Other investors include the Public Investment Corporation and Remgro, highlighting the increasing global interest in Discovery’s innovative approach to financial services.
RBC’s investment not only cements its role as a key shareholder but also bolsters global investor confidence in Discovery’s growth strategy. It is a testament to the growing appeal of South Africa’s financial services sector and the potential for sustained growth and strong shareholder returns in Discovery, further strengthening RBC’s presence in the region.
Discovery gains strategic ally with RBC
Since its founding in 1992 by Adrian Gore and Barry Swartzberg, Discovery has evolved from a specialized medical insurer into a diversified financial services conglomerate, with a notable presence in international markets like the UK, US, and China. Gore owns a significant 12.96 percent stake in the company, valued at over $540 million.
With the recent investment by RBC, Discovery gains a strategic ally that will help accelerate its growth and reinforce its position as South Africa’s premier health and life insurer, further expanding its influence in the global insurance and investment markets.
