Old Mutual buys 37.3% stake in UAP for $155.5m

Global insurance and banking group Old Mutual has acquired a further 37.3% stake in UAP Holdings, for around $155.5m.

Earlier this month, Old Mutual acquired a 23.3% interest in UAP for around $97.6m, in a bid to expand its operations in east Africa.

With this acquisition, Old Mutual has increased its stake to 60.7% in UAP.

Old Mutual noted that it has informed the Capital Markets Authority (CMA) in Kenya about the offer it has made to and the acceptance from The Abraaj Group, AfricInvest and Swedfund, who collectively hold 37.3% of the shares in UAP.

Currently operating in six countries. UAP has property and casualty (P&C) and health insurance businesses in Kenya, in addition to property investment portfolio and life insurance business.

The company has P&C, health insurance and life businesses in Uganda, while operates P&C businesses in Rwanda, Tanzania and South Sudan, and a brokerage business in the Democratic Republic of the Congo.

Subject to various regulatory approvals, the transaction is expected to be completed in 2015.