Nairobi, Thursday March 24th 2011… UAP Holdings, the financial services group with extensive insurance operations in Kenya, Uganda and Southern Sudan, announced today that formal discussions had commenced to expand the shareholder base of the company in line with its corporate vision and strategy and to comply with the new regulatory requirements on shareholding structures for insurance companies. 

The new requirements among other things restrict the maximum shareholding by a single shareholder to 25%. The timeline for compliance with this regulation is December 2011.

The Company held successful consultations with the existing shareholders during a comprehensive briefing in Nairobi. UAP Group Chairman, Dr. Joe Wanjui reported that this was a move the Board, Management and Shareholders had discussed for the last few years and picked up more intensely in the last 6 months.

The successful consultations, he noted, now paved way for the Board and Management to formally commence the process that will see the company raise new funds to finance the next phase of its corporate strategy execution.

This includes further expansion of the regional footprint of the business. The company has expanded its footprint to the DRC and is exploring opportunities in Rwanda and Tanzania. In addition it intends to invest at least Ksh 4 billion in commercial property developments in Nairobi and Kampala over the next two years.

“These initiatives are part of the natural progression of UAP as a strong business. They complement our recent demerger of the Life and General Insurance businesses and formation of the group holding company,” he said. 

To expand the shareholder base, UAP has considered a number of options. These include a rights issue, private placement, merger and acquisition, a strategic partner as well as an initial public offer and listing at the Nairobi Stock Exchange (NSE). 

The most strategic option would be the one that aligned with UAP’s strategic direction and facilitate the realization of built up value for existing shareholders. 

With this in mind Dr. Wanjui confirmed that, subject to receiving shareholders’ and regulatory approvals the company intends to pursue an initial public offer and listing at the NSE and added that the company was due to consult the Capital Markets Authority and other relevant parties on its intentions.

“This option will provide existing shareholders with liquidity for their investment in the company which has grown in value over the years. It will also enhance UAP’s strong corporate governance values”, Dr. Wanjui added.

He said that UAP Holdings would settle in due course on the target level of funding required to be raised and the final level and structure of shareholding. “We are still doing a lot of consultation and will provide updates as we proceed”.

AFRICAN Trade Insurance Agency (ATI), a multilateral trade and investment insurer, has pooled $144m to boost political insurance cover in Uganda.

Allan Mafabi, an executive at ATI, said the country had sailed through a history of political chaos leading to huge losses due to burglary and vandalism, but traders lose out if their enterprises have no political risk cover.

He noted that political insurance should be every business person’s priority.

“Our message is quite simple. ATI’s purpose in Uganda is to help insurers provide more options to their policy holders on one hand, while also supporting Ugandan exporters in this difficult global economic climate,” noted Mafabi.

Political risk insurance helps investors protect their business interests against government actions or politically-motivated violence that may impact negatively on their business.

ATI provides solutions that help attract more foreign direct investments into the African continent with competitively priced political risk insurance products.

Since inception, the firm has supported over $2b worth of trade and investments into Africa.

UAP is the pioneer in covering political and terrorism related risks; find more information here.

Source: New Vision

Effective today, our customers will be able to pay their insurance premiums using the Airtel Money (ZAP) service.* Below are the simple steps to follow when making a payment.

Step by step instructions

1. Select Zain on your phone menu
2. Select Zap
3. Select Money
4. Select Nickname
5. Enter UAP
6. Enter amount you wish to pay in Uganda Shillings
7. Enter your policy number as the reference 
       e.g 010/040/1/000123/2010
8. Confirm all the information you've entered is correct
9. Enter your ZAP password
10. Select Send

Wait for confirmation of successful transaction.

*Terms and conditions apply.

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