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Three UAP units wound up two years after Old Mutual merger

CMA chief executive Paul Muthaura. FILE PHOTO | NMG
CMA chief executive Paul Muthaura. FILE PHOTO | NMG 

Three business schemes previously run by UAP Holdings have been wound up, two years after the company merged with Old Mutual Kenya.

The Capital Markets Authority (CMA) said it had accepted to revoke UAP’s licences as fund and Real Estate Investment Trusts (Reits) manager as well as its permits as a collective investment scheme.

“Notice is therefore given to the members of the public to raise any unresolved issues if any with the company and also notify the authority (CMA) on the same within forty-five days from the date of publication of this notice” CMA chief executive Paul Muthaura said in a gazette notice on Friday.

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 had continued to operate similar units in life insurance and asset management as they work out the complex merger process.

UAP-Old Mutual Kenya Group’s chief executive Paul Mwangi said in April the merger of overlapping businesses was almost complete pending regulatory approval after which shareholders would endorse 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.”