Kenyan businessmen Joe Wanjui and James Muguiyi have pocketed at least Ksh3.2 billion from the sale of combined six percent stake UAP Holdings to South Africa’s Old Mutual Holdings.
The transaction which saw Old Mutual acquire 12.6 million shares from the duo has pushed the multinational’s shareholding to 66.7 percent from the previous 60.7 percent.
“The registration process [for the shares] was delayed and spilled over into 2020. That was the delay but they have been paid,” said Arthur Oginga, UAP’s CEO.
“The settlement amount equates to R437 million (Ksh3.2 billion), reflecting the contractual discount unwind and the movement in the Kenyan shilling to the rand over the period.”
Mr Wanjui has served in the company’s board for a total of 35 years and retired as a chairman on June 22, 2021.
He previously worked in top management positions for Unilever East Africa and Industrial and Commercial Development Corporation (ICDC).
Also, he served as the Chancellor of the University of Nairobi in 2003 when he was appointed by former President Mwai Kibaki.
On the other hand, Mr Muguiyi previously served as UAP’s chief executive from 1988 and 2012 and also worked with late business mogul Chris Kirubi. He remains non-executive director of UAP.
Mr Wanjui, who trades through Bawan Limited, previously held 43.25 million shares, a 20.4 percent stake in UAP.
Mr Muguiyi on the other hand directly held 12.6 million shares amounting to a 5.9 percent stake.
Old Mutual spent a total of Ksh20.4 billion in 2015 when it bought a 60.7 percent stake in the insurer from Mr Kirubi (9.58 percent), Centum Investment Company (13.75 percent), Africinvest, Abraaj and Swedfund.