Old Mutual acquires majority stake in UAP Holdings

Old Mutual Holdings will pay about US$ 155.5 million in cash for the stake. (PIX: Courtesy).

Old Mutual Holdings Limited has increased its stake in UAP Holdings Limited (UAP) to 60.66pc.

This follows a receipt of a notice of intention by Old Mutual Holdings Limited to increase its stake in UAP with a further acquisition of 37.33pc of the issued shares of the Company held by the private equity investors, The Abraaj Group, AfricInvest and Swedfund.

Reuters reports that the Anglo-South African financial services company will pay about $155.5 million in cash for the stake bought from the Abraaj Group, AfricInvest and Swedfund.

Old Mutual Holdings is the holding company for a group of asset management boutiques collectively known as Old Mutual Asset Management.

The company had earlier purchased 23.33pc shares previously held by Centum and industrialist Chris Kirubi.
In a statement to media houses, UAP said its strategic with Old Mutual will ensure the acceleration of UAP’s vision of being Africa’s revolutionary financial services group.

“The combined UAP and Old Mutual businesses in Kenya will be enhanced to include Insurance, Investment Management, Properties, Banking and Securities Brokerage thus creating a strong operating platform to continue growing the business. The growth of the UAP business in new markets including Tanzania, Rwanda and DRC will also be enhanced to include all products and services under the combined UAP-Old Mutual brand,” the statement said.

It is now expected that the complementarity of two strong brands will result in better value offering and strong future prospects for current and future clients by leveraging on the strengths of both organisations including: IT systems, distribution, wide range of products and services and strong leadership teams.

“This is an exciting development for our business and for our clients. The combined strengths of Old Mutual and UAP will give our customers unrivalled access to a full suite of financial services. Our partnership with Old Mutual is aligned with our vision of creating a revolutionary African financial services company that delivers what customers want and where they need it,” said Joe Wanjui, Chairman of UAP.

UAP has grown from humble roots as a Kenyan General Insurance services provider in 1920, to a strong business franchise focusing on Insurance (general, life and medical insurance), Investment Management and Properties in 6 East and Central Africa countries – Kenya, Uganda, South Sudan, Rwanda, Tanzania and Democratic Republic of Congo.