NAIROBI, Kenya, Dec 11-UAP Holdings has announced plans to merge its life insurance business with the life insurance business of Old Mutual Life Assurance Company Limited.
The Group’s company secretary Nkirote Mworia Njiru through a statement said the move is part of an internal restructuring of the UAP old Mutual Group where UAP Holdings will acquire shares in Old Mutual Life Assurance Company.
” Persuant to the proposed restructuring, UAPH will acquire shares in OMLAC through its wholly owned subsidiary UAP Life Assurance Limited and OMLAC will thereafter transfer it’s insurance business to UAP Life, resulting in a single unified business,” said Njiru.
According to UAP, the restructuring will be effected by way of a scheme of arrangement under part 34 of the companies act.
” 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 transaction will result in OMLAC becoming a subsidiary of UAPH through UAP Life.
UAP Old Mutual Group is confident that the restructuring will ensure the group realises increased effeciencies from consolidating the Kenyan businesses of UAP Life and OMLAC while achieving a simpler group co-operate structure.
The firm says it expects the restructuring exercise to be concluded by March 2021, which is subject to all regulatory approvals.
UAP Holdings shareholders will ratify the transaction at the Annual General Meeting immediately following the conclusion of the transaction.