Old Mutual partners Faulu Kenya DTM LTD
Old Mutual plc (“Old Mutual” or “the Group”) announced to the press that its Emerging Markets business is to enter into a strategic partnership with Faulu Kenya DTM LTD (“Faulu”) through the acquisition of a controlling stake in this business. Faulu was the first Deposit Taking Microfinance company to be licensed by the Central Bank of Kenya and is the second largest in East Africa with more than 400,000 customers. Faulu has a wide distribution network across Kenya with over 100 outlets, and serves a similar demographic to Old Mutual’s Mass Foundation business in South Africa with a broad range of financial services products.
The transaction is conditional on the relevant regulatory approvals being obtained and is expected to complete by the end of 2013. The consideration for the transaction will form part of the R5 billion previously identified by Old Mutual as being available for expansion into Africa.
Ralph Mupita, Chief Executive of Old Mutual Emerging Markets, said: “I am delighted that we have agreed this partnership with Faulu. We continue to see further opportunities for the development of our business across East Africa.”
Julian Roberts, Group Chief Executive, commented: “We are building on our existing business in Kenya with a significant extension of our distribution and product offering through this transaction. This is a further step in executing our strategy of expanding our African footprint.”
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Source: Old Mutual