Old Mutual plc, which earmarked 4.3 billion rand ($374 million) for acquisitions in Africa, increased its stake in Kenya’s UAP Holdings Ltd., meaning that the insurer has now spent more than half of that war chest.
Old Mutual, which is expanding in Africa to profit from the continent’s fastest-growing economies, will now hold 60.7 percent of UAP after purchasing a further 37.3 percent stake for $155.5 million in cash, the London-based insurer said in a statement Monday. The transaction takes its investment in UAP this month to $253 million.
“The majority stake we have secured in UAP, combined with the existing Old Mutual businesses in Kenya, will provide the Group with the scale and product breadth to capitalize on the significant growth expected in the region.”
In Kenya, East Africa’s largest economy, UAP has the third- biggest property and casualty market share, the second-ranked health insurance business, a large property investment portfolio and a fast-growing life insurance business, Old Mutual said.
UAP also has operations in Uganda, Rwanda, Tanzania, South Sudan and the Democratic Republic of Congo. This deal follows Old Mutual’s acquisition of microfinance company Faulu Kenya DTM Ltd.
“Following the conclusion of this transaction, we will have invested nearly $300 million in the region since 2012,” Ralph Mupita, chief executive officer of Old Mutual Emerging Markets, said in the statement.
Old Mutual rose in Johannesburg trading, climbing 1 percent to 35.37 rand as of 4:20 p.m.
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