Abraaj Capital sells 13.6% stake in Africa’s UAP Holdings

UAE-based private equity firm Abraaj Capital announced that it has sold its 13.6 per cent stake in UAP Holdings, a pan-African insurance firm.

UAP Holdings, which has been operating in Sub-Saharan Africa since 1977, has subsidiaries in Kenya, Uganda, Tanzania, Rwanda and South Sudan, as well as an insurance brokerage arm in the Democratic Republic of Congo.

The company offers services such as life insurance, general insurance, health insurance, premium financing services and investment management services.

Abraaj Capital said that it sold its stake to London-listed investment banking group Mutual plc. The value of the transaction was not disclosed.

In March 2012, Abraaj invested, through one of its funds, in UAP alongside Africinvest and Swedfund, using a convertible debt instrument. The private equity firm then converted its instrument into equity shares with a limited public offer, a statement said.

Following its investment, Abraaj said that it has worked closely with UAP Holdings to expand its regional footprint. During this period, UAP Holdings expanded organically into Rwanda and via an acquisition to Tanzania.

UAP also grew its portfolio during the investment period, the statement added.

The company completed an office park in Uganda and a residential building in South Sudan. UAP Holdings is currently constructing a 31-storey building in Nairobi and another office building in South Sudan.

Abraaj has increasingly invested in Africa over the last few years, looking to cash in on the rapid urbanisation and favorable demographics in the continent.

The private equity firm said that it has deployed nearly $3bn across the African continent.

In East Africa alone, Abraaj has over 19 investments, with an active portfolio in Kenya, including dairy company Brookside Dairy Limited and cement company Athi River Mining Limited.

Abraaj also said recently that it closed a $990m sub-Saharan Africa fund that will focus on investing in consumer goods and services firms and in infrastructure services in countries such as Nigeria, Ghana, Côte d’Ivoire, South Africa and Kenya.