AfricInvest, The Abraaj Group and Swedfund, will sell their 37.3% collective stake in UAP Holdings to Old Mutual Holdings, a wholly-owned subsidiary of Old Mutual, for KES 14.2bn ($155.5m).

Old Mutual had previously announced on January 9, 2015 that it had entered into an agreement to purchase 23.3% of UAP from Dr C Kirubi and Centum.

With the addition of the newly purchased shares, this will bring Old Mutual’s stake in UAP to 60.7% giving it control, but still retaining strong local shareholding, signifying a strong partnership.

The transaction is expected to be completed in the first half of 2015 subject to all regulatory approvals.

UAP is one of the leading insurance groups in East Africa, headquartered in Nairobi, with 12 operating subsidiaries across the region including in Kenya, Uganda, Tanzania, South Sudan, Rwanda and DRC.

George Odo, Senior Partner & MD for AfricInvest’s East Africa operations, said: “AfricInvest is proud to be part of UAP’s history, and to have helped our local partners build a strong regional brand that ultimately resulted in a partnership with the leading insurer on the continent.”

Since its investment in UAP in 2012, AfricInvest, along with the other investors and in partnership with the local shareholders, has helped UAP to improve its governance and accelerate its regional expansion with new market entries in Rwanda, Tanzania and DRC, together enhancing its operations and resulting in a threefold increase in shareholder value over the period.

Old Mutual has identified East Africa as a key region within sub-Saharan Africa in which it needs to scale.

Following the conclusion of this transaction, Old Mutual has invested nearly $300m in the region since 2012.

Julian Roberts, Group CEO of Old Mutual, said: “We are delighted to have secured a majority stake in UAP. East Africa is a core growth market for Old Mutual and this transaction is a critical step in Old Mutual becoming an African financial services champion and further progress on our strategic agenda to transform the Group and improve its sustainable growth profile.”

Dr Joseph Wanjui, Chairman of UAP, said: “This is an exciting development for our business and for our clients. The combined strengths of Old Mutual and UAP will give our customers unrivalled access to a full suite of financial services."

“Our partnership with Old Mutual is aligned with our vision of creating a revolutionary African financial services company that delivers what customers want and where they need it," he added.