Further African expansion with Kenyan acquisition
Old Mutual plc
Ref 58/13
3 July 2013
Old Mutual FURTHERS AFRICAN EXPANSION with ACQUISITION IN KENYA
Old Mutual plc ("Old Mutual" or "the Group") announces 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."
Enquiries
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Notes to Editors
Old Mutual provides life assurance, asset management, banking and general insurance to more than 14 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.
In the year ended 31 December 2012, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £262 billion of funds under management from core operations.
For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com
For further information on Faulu, please visit the corporate website at www.faulukenya.com
This information is provided by RNS
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