Old Mutual buys majority shares in UAP
UAP Holdings Limited (UAP) has entered into strategic partnership with Old Mutual Plc. The later now holds 60.66% shareholding after acquiring an additional 37.33% of issued shares of the company held by the private equity investors – The Abraaj Group, AfricInvest and Swedfun.
From humble roots as Kenyan General insurance services provider in 1920, UAP has grown into a strong business franchise focusing on Insurance (General, Life and Medical Insurance), investment management and properties in six East and Central African countries – Kenya, Uganda, South Sudan, Rwanda, Tanzania and Democratic Republic of Congo. UAP is undoubtedly one of the top three insurance sector players in the EAC.
According to the deal, 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.
According to a press release, UAP brand is set to catapult the business into the next growth phase.
‘‘Going forward, the anchor shareholders and old mutual are committed to building significant stakeholder value, in conjunction with all other local shareholders. Whilst shares are currently trading on the Over-The-Counter (OTC) market, the vision to list the company on stock exchange remains a core objective’’ reads a statement in part.
The partnership of between two giants is expected to benefit clients. Clients will benefit from the combined strengths in: IT systems, distribution networks, a wide range of products and services as well as strong leadership teams. Old Mutual has the expertise, skill, experience and financial resources needed to take UAP group to the next level. Insurance is all about risk management. And the combination of Old Mutual and UAP will change the industry landscape.