According to African news outlet Business Day Live, Sanlam Emerging Markets (SEM) had said on Friday it had been talking to Nico Holdings over buying a stake in its insurance unit in Africa.

Sanlam's buyout offer of a 49% ownership stake in Nico Life Insurance would be part of the company's strategy to expand in Asian and African markets.

Nico Life Insurance provides a variety of financial services in banking, life insurance, pensions administration, lease finance and information systems. The business operates in the regions of Uganda, Zambia, Tanzania and Malawi.

Sanlam Emerging Markets CEO Heinie Werth said, "SEM already holds a 49% in Nico Life Insurance in Malawi and the current discussions form part of SEM's strategy to deepen relations with existing partners in our pursuit of appropriate opportunities in emerging markets. The life operations in which we became involved during 2011 have done well despite difficult trading conditions in Malawi in recent years. We are looking forward to broadening our relationship with Nico Holdings,"

Werth had not discussed any financial details regarding the buyout offer.