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Companies

Old Mutual writes off Sh9bn in its Kenyan subsidiaries

An Old Mutual branch in Nairobi. PHOTO | FILE
An Old Mutual branch in Nairobi. PHOTO | FILE 

London-based Old Mutual Plc has written down the value of its local insurance subsidiaries by Sh9.7 billion in the wake of challenges facing its acquisition of insurer UAP Holdings.

The multinational says in regulatory filings that it impaired goodwill of £71 million (Sh9.7 billion) after integrating UAP with its other local financial services firms to create UAP-Old Mutual.

Old Mutual paid Sh20.8 billion to acquire a 60.7 per cent stake in UAP, buying out businessman Chris Kirubi and institutional investors like Africinvest.

The multinational’s 60.7 per cent interest had a book value of Sh8.9 billion at the time.

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