Jubilee Holdings has completed the sale of a majority stake in its Mauritius subsidiary to insurance giant Allianz SE, which marked the last transaction of its partial divestiture in its general insurance businesses in the region.
The company in 2020 started the process of selling stakes ranging from 51 percent to 66 percent in its general insurance subsidiaries in Kenya, Uganda, Tanzania, Mauritius and Burundi to Allianz for a total of Sh10.8 billion.
Allianz said in a statement on Wednesday that it purchased 66 percent of the Mauritius unit’s shares in the deal. Jubilee previously owned 88.15 percent of the subsidiary.
“This transaction consists of Allianz acquiring 51 percent of ordinary shares from Jubilee Holdings Limited (JHL) and all shares previously owned by the Aga Khan Fund for Economic Development (AKFED).
JHL will retain an 8.37 percent stake in the company and a further 25.63 percent through its subsidiary, the Jubilee Investments Company Ltd,” said Allianz.
Jubilee will have received a total of Sh7.75 billion from the divesture plan now that Mauritius deal is completed. Allianz will also invest Sh3 billion in the subsidiaries as the majority shareholder.
Following the agreements to acquire a majority stake in Jubilee’s general insurance units, Allianz signed a deal with South Africa’s Sanlam Limited to create a joint venture that could have an implication for their Kenya-based subsidiaries.
SOURCE: BUSINESS DAILY