Old Mutual East Africa Group

Old Mutual East Africa Group is the regional financial-services organization associated with Old Mutual’s operations in East Africa and selected neighboring markets. Its headquarters are in Nairobi, Kenya, where the group is based in the 33-storey Old Mutual Tower on Hospital Road in Upper Hill, approximately three kilometres southwest of Nairobi’s central business district. The group’s reported operating footprint includes Kenya, Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of the Congo. The group was assembled during Old Mutual’s expansion and consolidation of financial-services assets in Kenya. A major step came in 2014, when Old Mutual acquired a controlling 67 percent interest in Faulu Kenya, a privately held microfinance bank described as Kenya’s second-largest microfinance bank at the time. In early 2015, Old Mutual acquired a 60.66 percent holding in UAP Holdings. The reported consideration for the UAP transaction was approximately US$253.1 million, or KSh23.1 billion, while the Faulu Kenya transaction was reported at KSh3.6 billion, approximately US$40 million. These transactions broadened Old Mutual’s Kenyan presence beyond its legacy operations and provided exposure to banking, microfinance, insurance and related financial services. Later in 2015, Old Mutual began consolidating its Kenyan investments under the Old Mutual East Africa Group name. The integration covered three principal components: Old Mutual’s majority interest in UAP Holdings, its controlling interest in Faulu Kenya, and the legacy businesses of Old Mutual Kenya, which remained wholly owned by Old Mutual. The structure was intended to bring the businesses under a more coordinated regional platform rather than operate them as separate country or acquisition-led businesses. The group’s business scope is therefore associated with a portfolio model rather than a single consumer product. Its known constituent businesses include UAP Holdings, Faulu Kenya and Old Mutual Kenya’s legacy operations. Through those businesses, the group has been connected with insurance, investment, savings, lending and other financial-services activities, although the available reference material does not provide a complete current product catalogue or detailed breakdown of revenue by business line. Governance described in the reference material consists of a 14-person board chaired by Dr. Joseph Barrage Wanjui. Peter Mwangi is identified as Group Chief Executive Officer. A plan to seek a Nairobi Securities Exchange listing after completion of the mergers was also reported, with 2018 given as the intended target. The available material does not establish whether that proposed listing occurred, and no ticker is therefore assigned. Old Mutual East Africa Group should be distinguished from Old Mutual plc and from individual operating companies such as UAP Holdings and Faulu Kenya: it is the regional grouping used to coordinate Old Mutual’s East African interests.

Old Mutual East Africa Group emerged from Old Mutual’s effort to consolidate and coordinate its financial-services interests in Kenya and the wider East African region. Rather than representing a single product company, the group functions as a regional corporate platform linking Old Mutual’s Kenyan legacy businesses with acquired operating companies. The first major transaction identified in the available reference material occurred in 2014, when Old Mutual purchased a 67 percent controlling interest in Faulu Kenya. Faulu Kenya was described as Kenya’s second-largest microfinance bank and was privately held. The acquisition gave Old Mutual a substantial position in microfinance banking and broadened its access to customers seeking credit and other financial services outside the group’s traditional insurance and investment activities. The reported purchase price was KSh3.6 billion, approximately US$40 million at the time. In early 2015, Old Mutual made a larger regional investment by acquiring 60.66 percent of UAP Holdings. The consideration was reported as US$253.1 million, equivalent to approximately KSh23.1 billion. UAP Holdings added another significant set of insurance and financial-services assets to Old Mutual’s African portfolio and strengthened the group’s position in multiple markets. Later in 2015, Old Mutual began consolidating these investments in Kenya under the Old Mutual East Africa Group name. The proposed structure combined the majority-owned UAP Holdings business, the majority-owned Faulu Kenya business and Old Mutual Kenya’s legacy operations, which were described as wholly owned by Old Mutual. The consolidation was intended to provide a common regional identity and management structure while bringing different financial-services capabilities into a single group framework. The group’s headquarters are located in Old Mutual Tower on Hospital Road in Nairobi’s Upper Hill district. Its reported geographic reach extends beyond Kenya to Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of the Congo. The reference material identifies the organization as a financial-services conglomerate, but does not provide a complete current account of each subsidiary, product line, market share or legal entity. Governance information in the reference identifies a 14-member board chaired by Dr. Joseph Barrage Wanjui, with Peter Mwangi serving as Group Chief Executive Officer. The group was also reported to be considering a Nairobi Securities Exchange listing after the consolidation process and mergers had been completed, with 2018 mentioned as the intended timing. Because the available material does not confirm the result of that proposal, the group’s current listing status and any possible ticker remain unverified. Overall, Old Mutual East Africa Group is best understood as Old Mutual’s regional East African operating and consolidation platform. Its historical development was driven by acquisitions and integration, particularly the combination of insurance, microfinance and other financial-services operations in Kenya, followed by a broader regional presence.

• 2015

  Acquisition of UAP Holdings stake

  [1]Old Mutual East Africa Groupen.wikipedia.org

  Old Mutual acquired 60.66 percent of UAP Holdings in a transaction reported at approximately US$253.1 million.

• 2015

  Formation and consolidation of the East African group

  [1]Old Mutual East Africa Groupen.wikipedia.org

  Old Mutual began consolidating UAP Holdings, Faulu Kenya and the legacy Old Mutual Kenya businesses under the Old Mutual East Africa Group structure.

• 2014

  Acquisition of Faulu Kenya

  [1]Old Mutual East Africa Groupen.wikipedia.org

  Old Mutual acquired a 67 percent controlling interest in Faulu Kenya, a privately held Kenyan microfinance bank.

A diversified regional financial-services platform combining insurance, microfinance, banking and related Old Mutual businesses across East Africa and nearby markets.

• Insurance

  Insurance services

  Insurance is one of the principal financial-services activities associated with the group through UAP Holdings and Old Mutual’s legacy Kenyan operations. The available reference identifies these businesses as part of the consolidated platform but does not specify a complete list of insurance products, policy types or current market offerings.

• Microfinance and banking

  Faulu Kenya microfinance banking

  Faulu Kenya forms the group’s microfinance banking component. Old Mutual acquired a controlling interest in 2014, adding a privately held Kenyan microfinance bank to the regional portfolio. The available material does not provide a detailed current description of Faulu Kenya’s accounts, lending products or distribution channels.

• Investment and savings

  Savings and investment services

  The group is associated with savings, investment and related financial-services activities through Old Mutual’s legacy businesses and the wider regional portfolio. Specific funds, investment products and terms are not identified in the supplied reference material.

• 2015

  Acquire a majority interest in UAP HoldingsM&A

  Background

  Old Mutual pursued a larger regional expansion in insurance and related financial services.

  Action taken

  Old Mutual acquired a 60.66 percent shareholding in UAP Holdings.

  Aftermath

  UAP Holdings was included in the businesses subsequently consolidated under Old Mutual East Africa Group.

  Reported acquisition consideration. US$253.1 million, approximately KSh23.1 billion (Early 2015)

  Source

• 2015

  Consolidate Kenyan investments under one regional groupStrategy

  Background

  Following the Faulu Kenya and UAP Holdings transactions, Old Mutual sought to coordinate its Kenyan interests within a unified regional structure.

  Action taken

  Old Mutual began consolidating UAP Holdings, Faulu Kenya and its wholly owned Old Mutual Kenya legacy businesses under Old Mutual East Africa Group.

  Aftermath

  The group became the reported platform for Old Mutual’s operations across Kenya and several neighboring markets.

  Source

• 2014

  Acquire a controlling interest in Faulu KenyaM&A

  Background

  Old Mutual sought to expand its Kenyan financial-services portfolio into microfinance banking.

  Action taken

  Old Mutual acquired 67 percent of Faulu Kenya.

  Aftermath

  Faulu Kenya became one of the businesses incorporated into the later Old Mutual East Africa Group consolidation.

  Reported acquisition consideration. KSh3.6 billion, approximately US$40 million (2014)

  Source

1. 1Old Mutual East Africa Groupen.wikipedia.org