Business Daily Date: 16.06.2014 Page 8 Article size: 371 cm2 ColumnCM: 82.44 AVE: 156644.44 JSElisted group buys stake in AAR Insurance ?ACQUISITION SA's AfroCentric buys 12.29pc shares in insurance arm through subsidiary BY VICTOR JUMA Johannesburg Exchangelisted con to be the largest private healthcare The Afrocentric consortium re glomerate AfroCentric has acquired provider in South Africa covering branded Alexander Forbes Health a 12.29 per cent stake in the insur about 3.2 million people. The scheme care into AfroCentric Health Solutions ance unit of AAR Kenya, in a deal also operates in Namibia, Botswana, which now offers medical insurance, j oining a competitive market to rival that values the company at about Swaziland and Zimbabwe. Apart from medicare, Afrocentric players such as Resolution, Jubilee, Afrocentric, through its subsidiary has interests in electronics, mining andCIC. The company offers insurance serv Medscheme Holdings, teamed up with and communication industries. ices, health and wellness management Zanele Investments Holdings, a local The acquisition signals increased Sh2 billion. firm, to close the Sh245 million deal dealmaking in the local insurance last month. AAR Insurance created new shares and related actuarial services to com market, with buyers seeking to ride panies and individuals. Its acquisition of a minority stake on existing operations to grow their and also ceded a portion of its stake to business. accommodate the two investors. in AAR Insurance signals its increased Britam is set to complete its 99 interest in the local medical insurance "The institutional investors took per cent acquisition of Real Insur business that is seen thriving on in a 12.29 per cent stake in AAR Insur ance in a stockandcash deal worth creased spend by companies and mid ance," said Geoffrey Nzau, the insur Shl.3 billion. Frankfurtbased African Devel ance firm's CEO. "The money will be dle class households. For AAR, sale of a minority stake used to expand our operations in the opment Corporation (ADC) is also to the Afrocentric consortium is in region," he added. scouting for a buyer of its 38.74 per line with the company's ongoing re AAR has a separate healthcare cent stake in Resolution Insurance structuring. division which has also attracted co as it divests to focus on the bank AAR recently split its operations investors, including Swedfund and ing sector. into AAR Insurance and AAR Health the International Finance Corpora For Afrocentric, the acquisition care in a bid to diversify its patient tion (IFC). of AAR Insurance has expanded its base away from its insurance policy AfroCentric is a diversified invest presence in the local healthcare and holders. ment holding company that is listed insurance business. The strategy is also meant to help on the Johannesburg Stock Exchange's The South African firm in August the company expand its healthcare healthcare sector. teamed up with Mr Nzau to acquire facilities including clinics in the re It owns Medscheme Holdings, said the Kenyan unit of Alexander Forbes gion. Healthcare, a medical insurance firm AAR plans to offer more health which previously operated as a medi services such as specialist consulta tion, imaging and diagnostics. It is cal insurance provider (MIP). Alexander Forbes opted to sell the also set to acquire stakes in hospitals unit in the wake of new regulations which could act as referral points for that forced MIPs to either convert into its outpatient customers. fullyfledged insurers, insurance bro The medical group currently oper kers, or medical service providers un ates 27 clinics in Kenya, Uganda and Tanzania and provides health insur der the Ministry of Health. The MIPs were operating as in ance to some 190,000 clients. surers and insurance brokers, taking It is this reorganisation that at premiums for the less risky outpatient tracted new investors to the compa services and reinsuring the risky inpa ny's healthcare arm (AAR Health Care tient business with local insurers. Holdings), with IFC that injecting $4 million (Sh348 million) last year for an undisclosed stake. Ipsos Kenya Acorn House,97 James Gichuru Road Lavington Nairobi Kenya Business Daily Date: 16.06.2014 Page 8 Article size: 371 cm2 ColumnCM: 82.44 AVE: 156644.44 An AAR clinic at Sarit Centre in Nairobi. The company recently split its operations into AAR Insurance and AAR Healthcare in a bid todiversify its patient baseaway from its insurance policy holders, file Ipsos Kenya Acorn House,97 James Gichuru Road Lavington Nairobi Kenya
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