Old Mutual can now acquire a 37.3 per cent stake of UAP Holdings, following approval of the transaction by regulators.
The acquisition is expected to hand Old Mutual a 60.7 per cent stake in UAP Holdings on completion.
Old Mutual in January had acquired 23.3 per cent of UAP Holdings —a combined stake from investment firm Centum and director and businessman Chris Kirubi for $97.6 million (Sh8.9 billion).
The multinational had further intended to purchase a 37.3 per cent stake held by the Abraaj Group, AfricInvest and Swedfund.
The series of transactions have now effectively made UAP a subsidiary of Old Mutual.
“This a significant milestone in the delivery of our strategy. A majority stake in UAP, combined with the existing Old Mutual businesses in Kenya, will provide the group with the scale and product breadth to capitalise on the significant growth expected in the region,” said Group CEO, Old Mutual Kenya, Peter Mwangi, in a joint statement with UAP managing director Dominic Kiarie.
“Old Mutual brings on board global connections and expertise, systems/infrastructure, in addition to access to significant financial resources that will enable UAP compete effectively in the region’s fast changing financial services industry,” Mr Kiarie said.