Old Mutual Building in Nairobi partially branded as Faulu after it
acquired a stake in the microfinance bank in 2014. file photo | nmg 
The merger of UAP-Old Mutual Kenya
Group’s overlapping businesses is moving closer to the finish line,
group chief executive Peter Mwangi said on Tuesday.
Mr Mwangi said the firm is awaiting nod from regulators, after which shareholders would approve the plans.
“We
have made substantial progress in integrating those businesses. We are
now at a point where we can formally approach both regulators and
shareholders to give us their formal approvals for us to complete those
processes,” he said.
“The first step will be for UAP
Holdings to acquire the Old Mutual subsidiaries and then some of our
businesses, which are overlapping like the life businesses. After the
acquisition we will then be merging those to create one life business.”
Old
Mutual acquired a majority stake of 60.7 per cent in UAP for Sh25.6
billion ($253 million) in July 2015, but the two holding companies have
continued to operate similar units in life insurance and asset
management as they work out the complex merger process.
Mr Mwangi said once done, the two life and asset management firms under UAP will then merge into one.
Both
the acquisition and mergers require approvals from the Insurance
Regulatory Authority and the Capital Markets Authority besides
shareholders.
UAP Holdings is a public company trading over the counter and has issued a listed bond.
Old
Mutual’s subsidiaries include Faulu Kenya, Old Mutual Securities, OM
Asset managers, OM Investment services, OM Properties, OM Capital and OM
Life Assurance, which will now all come under the umbrella of UAP.
No comments :
Post a Comment