Old Mutual purchases 23.3% stake in UAP Holdings

Investment, insurance and banking company Old Mutual has taken a 23.3% stake in East and Central African financial services company UAP Holdings for $97.6m (£64.1m).

The firm said the deal for UAP - which operates in six different countries in the region, including Kenya, Uganda and Tanzania and the Democratic Republic of the Congo - will be paid in cash and will be funded from existing financial resources.

The African business has the third and second largest property and casualty market share in Kenya and Uganda respectively, while it has the second largest market share in the health insurance business in both countries.

"This investment is another significant step in delivering the Group's aim of becoming an African financial services champion,” said group Ralph Mupita, chief executive of Old Mutual Emerging Markets.

“UAP is an ideal and complementary fit to our existing Kenyan businesses and we look forward to deepening and broadening our relationship in the future."

Old Mutual shares were down 1.65% to 190.20p at 11:49 on Friday.