Old Mutual plans to acquire Nigerian firm

Old Mutual plans to acquire Nigerian firm

2012-02-22 12:37

Johannesburg - Old Mutual [JSE:OML] announced on Wednesday that a preliminary non-binding offer has been accepted by Ecobank Transnational Incorporated (ETI) for the acquisition of Nigerian insurer Oceanic Life.

Oceanic Life was acquired by ETI in October 2011 as part of the Oceanic Bank Group.

Old Mutual and ETI are currently negotiating and finalising the relevant legal agreements, which will include regulatory approvals in South Africa and Nigeria.

Oceanic Life is a Nigerian life assurance company with a market share of 1.8% and a net asset value of $16m.

The acquisition will form part of Old Mutual's strategy of expanding its presence in sub-Saharan Africa, it said.