East African insurance giants Jubilee Holdings have announced entering into a partnership deal with Allianz Africa, a subsidiary of the Germany Stock Exchange-listed enterprise Alianz SE.
The agreement announced by Jubilee Holdings will see Jubilee Holdings LTD losing most of its general business subsidiaries' shares to the Allianz group.
Jubilee Holdings Chairman Nizar Juma in a public notice on Tuesday stated that the two companies had reached a decision to establish a long-term business partnership across five African countries.
In the deal, Alianz group will now become a key shareholder in the Jubilee Holdings general business following the acquisition of stakes ranging from 51% to 66 per cent in its subsidiary companies.
In the deal, Jubilee will receive at least Ksh7.75 billion leaving the company with a minority stake in all its subsidiary establishments. Juma, in the announcement, held that the company's life and health insurance segments shall not be affected by the deal.
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"Jubilee Holdings Limited will continue to hold a significant minority equity stake in each of these operating subsidiaries. The transaction does not include any of the Jubilee Life nor Health insurance businesses in Kenya, Uganda and Tanzania," stated Juma.
Jubilee's general insurance business accounts for an estimated 12.3 per cent of the consolidated company assets that are valued at Ksh32.3 billion as of June 30, 2020.
Juma further disclosed that the transaction will see Jubilee General Insurance taking over all the insurance business under the Allianz subsidiary in Kenya.
Jubilee Holdings had earlier this year restructured all its operations across East Africa breaking its key target markets into the subsidiary businesses.
The capital markets authority and the insurance regulatory authority made approvals for the deal. The company shareholders have been advised to exercise caution when trading in the company shares across Uganda, Kenya and Tanzania.
Jubilee Holdings regional CEO Julius Kipng'etich in an internal memo informed staff that they will not be affected by the deal.
