Old Mutual today announces that its acquisition of a majority stake in Faulu Kenya DTM LTD has received the final required regulatory approvals from the Financial Services Board (FSB) of South Africa and the Central Bank of Kenya.
On July 2013, Old Mutual has reached an agreement to acquire a controlling stake in Faulu Kenya in a deal that will see the micro-lender company with set ownership limits.
The transaction offers Old Mutual a piece of Kenya’s banking business and deepens its financial supermarket model, which includes trading shares, selling insurance products and offering loans.
The sale will allow Faulu Kenya, majority owned by non-governmental organisation Food for the Hungry International (FHI), to diversify its ownership and meet the Central Bank of Kenya ownership caps.
Ralph Mupita, CEO of Old Mutual Emerging Markets, commented: "With its wide distribution network across Kenya and the similarity in its customer base to Old Mutual's Mass Foundation business in South Africa, this partnership with Faulu represents a significant further opportunity for the development of our business across East Africa."
