Regional based insurance firm UAP Holdings has proposed to merge its life insurance business with the life insurance business of Old Mutual Life Assurance as part of its internal restructuring of the Group.
According to the proposal, UAP Holdings will acquire shares in Old Mutual through its subsidiary UAP Life Assurance Limited and Old Mutual Assurance Company resulting in a single ‘unified insurance business’.
“UAP Old Mutual Group is confident that the restructuring will ensure the group realises increased efficiencies from consolidating the Kenyan business of UAP Life and OMLAC, while achieving a simpler group corporate structure,” said the Board.
“The scheme of arrangement will set out the terms on which UAP Life will acquire the OMLAC shares from the current OMLAC shareholders and will have to be approved by the OMLAC shareholders in an extraordinary general meeting and sanctioned by the High Court,” reads the statement.
The process is expected to be completed by March 2021.
The scheme now awaits requisite approvals from statutory authorities including Capital Markets Authority, Competition Authority of Kenya and respective shareholders and creditors of both the companies.