South Africa-based long-term savings, protection and investment group, Old Mutual is considering acquisition of a majority stake in Ghana-based Provident Life Assurance Company, in an effort to expand its geographical footprint in African region.

The consideration forms part of the R5bn ($505m) previously identified by the company as being available for expansion into Africa.

Provident Life Assurance is a provider of life insurance and investment products, mainly through an agency force.

Old Mutual Group chief executive Julian Roberts said, ”This transaction is another important step in our strategy of expanding our emerging markets businesses.”

Subject to relevant regulatory approvals, the transaction is anticipated to complete by the end of 2013.

IC Securities Ghana Limited served as advisors to Old Mutual on the transaction.

Listed on the London and Johannesburg Stock Exchanges, Old Mutual provides life assurance, asset management, banking and general insurance to over 14 million customers in Africa, America, Asia and Europe.