Old Mutual acquired a majority stake of 60.7 per cent in UAP for Sh25.6 billion ($253 million) in July 2015,
The two holding companies have continued to operate similar units in life insurance and asset management as they work out the complex merger process.
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.
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