Abraaj Group sells UAP stake to Old Mutual

Global investment firm Abraaj Group on Monday announced its exit from UAP following the sale of its entire 13.6 per cent stake to Old Mutual.

In a statement, the firm said it had exited its investment in UAP Holdings in a deal estimated to be worth about Sh5.6 billion. UAP’s shares are traded over the counter (OTC).

In March 2012, Abraaj invested in UAP alongside Africinvest and Swedfund, using a convertible debt instrument, which was later in November 2012 converted into equity valued at about $54.8 million.

“We invested in UAP based on the company’s strong brand and well established business lines. With a surge in demand driven by the rapid expansion of a young, urban middle class across Sub-Saharan Africa, UAP has developed in key African markets, and is well positioned to lead the insurance sector in the region,” Abraaj Group partner Davinder Sikand said.

In East Africa, Abraaj has over 19 investments, with an active portfolio in Kenya that includes Brookside Dairy and Athi River Mining.

Recently, London-listed investment firm, Old Mutual, announced it would acquire 37.3 per cent stake collectively held in UAP by Abraaj Group, AfricInvest and Swedfund at an estimated $155.5 million.

The acquisition handed Old Mutual control of the insurance firm with a 60.7 per cent stake.

READ: UAP, Old Mutual agree on merger ahead of listing

Earlier in the year, Old Mutual bought a 23.3 per cent stake in UAP for $97.6 million. UAP has with subsidiaries in Kenya, Uganda, Tanzania, Rwanda and South Sudan. It also has an insurance brokerage arm in the Democratic Republic of Congo.

“Abraaj played an important role in developing UAP’s business, enhancing corporate governance and positioning the company for further growth UAP-Old Mutual Group, chairman, Dr Joseph Wanjui, said.