Mauritius Union Assurance acquires stake in Kenya’s Phoenix Transafrica
The transaction, which is currently estimated at around Rs 685 million (USD 22.6 million), will be partly financed from MUA’s own resources, together with a bond issue. (Image: Adenia)
Financial services major Mauritius Union Assurance (MUA) has finally completed the purchase of all issued shares in Kenya’s general insurance major Phoenix Transafrica Holdings Limited (PTHL).
The Mauritian firm had earlier issued a cautionary announcement on 3 October 2013 informing the shareholders and the general public about the proposed acquisition.
The acquisition of stake in PTHL was finally completed on Friday May 30, 2014 at the headquarters of the Kenyan financial services major in Nairobi.
The transaction, which is currently estimated at around Rs 685 million (USD 22.6 million), shall be adjusted post-completion in accordance with the terms of the sale and purchase agreement in order to obtain the final price for the transaction.
In the aftermath, the transaction will be partly financed from MUA’s own resources, together with a bond issue, the details of which will be communicated in due course.
The proposed transaction is in line with MUA’s expansion strategy in South Eastern Sub-Saharan Africa. The board of MUA believes that the proposed transaction will help to create value for its shareholders in the future.
PTHL currently holds a controlling interest in Phoenix of East Africa Assurance Company Limited (PEAL), a company incorporated in Kenya and duly licensed to carry out general insurance business in Kenya.
In turn, PEAL holds controlling interests in subsidiaries incorporated in Tanzania, Uganda and Rwanda.
Each of these subsidiaries is duly licensed to carry out general insurance business in its jurisdiction of incorporation.
About Mauritius Union Assurance Company Limited (MUA):
The Mauritius Union Assurance Company Limited was incorporated in 1948 and has been listed on the Stock Exchange of Mauritius (SEM) since 1993.
Its insurance activities are organised under the brands Mauritius Union General Insurance and La Prudence Life Insurance (La Prudence Mauricienne Ltée is wholly-owned by Mauritius Union Assurance).
The group also holds stake in three subsidiaries, two of which, Feber Associates and National Mutual Fund (NMF) are owned 100% by the group and specialize in group pension schemes and fund management respectively. The third, Associated Brokers Ltd (ABL), is 80% owned by the group. ABL is a member of the SEM and deals with stock broking services.
The Mauritius Union Group is financially strong with a well-organised back office structure comprising IT, Human Resources, Marketing, Logistics, Investment, Finance & Customer Care teams to support its various operating activities.