Old Mutual: Further 37.3% stake in UAP bought

OLD MUTUAL had bought another 37.3 percent in UAP Holdings, it said yesterday, taking its stake in the Kenyan insurer to 60.7 percent. The Anglo-South African financial services company would pay about $155.5 million (R1.8 billion) in cash for the stake bought from the Abraaj Group, AfricInvest and Swedfund, it said. The deal is expected to complete during 2015 and will be funded from existing group resources. “The majority stake we have secured 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,” the firm said. Earlier this month, Old Mutual bought a 23.3 percent stake in UAP for $97.6m. Old Mutual shares rose 1.03 percent to close at R35.39 on the JSE yesterday. – Reuters