Old Mutual has acquired a 37.3% of UAP Holdings for some $253m making it a majority shareholder in UAP with 60.7% stake in a move expected to fuel UAP’s vision of being Africa’s revolutionary financial services group.
The 37.3 percent was acquired from UAP’s private equity investors – The Abraaj Group, AfricInvest and Swedfund. Old Mutual had earlier bought 23.3% from Centum and Dr. Chris Kirubi.
Present in Kenya, Uganda, South Sudan, Rwanda, Tanzania and Democratic Republic of Congo, UAP focuses on general, life and medical insurance, Investment Management and real estate.
Dr Joe Wanjui, Chairman of UAP, said: “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.”
Old Mutual said it aims to merge its businesses with UAP’s to run as one integrated business in the region. to increase revenue generating capabilities.
In Kenya, UAP has the third largest Property and Casualty (P&C) market share; the second largest Health Insurance business; a substantial property investment portfolio and a fast growing Life Insurance business. It has established diverse distribution networks including via brokers, an agency force, direct sales, bancassurance, digital, and via supermarkets.
In Uganda and South Sudan, UAP has the largest P&C market share as well as substantial property investment portfolios. UAP also has P&C businesses in Rwanda and Tanzania, the third largest Life Assurance business in Uganda and a brokerage business in DRC.
Old Mutual ealier acquired a 67% stake in Faulu Microfinance Bank to broaden its financial services product offering in line. It has also made similar acquisitions in Nigeria.