UAP Holdings and Old Mutual Kenya will merge to form one company that will be listed on the Nairobi Securities Exchange (NSE).
UAP shareholders agreed to the merger deal at last Friday’s annual general meeting that was held in Nairobi.
The decision to list follows Old Mutual increasing its shareholding to 60.66 per cent from 23.3 per cent after the firm bought a combined 37.3 per cent from private equity firms Aureos, Africinvest and Swedfund for around Sh14 billion.
The new entity is expected to result in synergy from the two firms.
“The complementarity of the two strong brands – UAP, a distinctive brand south of the Sahara and north of the Limpopo, and Old Mutual, a strong global brand and South Africa’s leading insurance brand – will also result in better value offering for current and future clients. They will benefit from the combined strengths of both organisations in IT systems, distribution networks, a wide range of products and services, as well as strong leadership teams,” said UAP chairman Joe Wanjui.
The two firms are in the meantime integrating their systems.