Old Mutual Reveals Services Hit Amid Buyout Fallout

Old Mutual Holdings PLC has given an update on the recent court order and the ongoing legal proceedings involving the Company.

In a statement on August 26, Old Mutual acknowledged the court order but affirmed that it only affects Old Mutual Holdings PLC while other entities continue with normal operations.

“It is important to clarify that these legal proceedings are solely related to Old Mutual Holdings Plc. Other entities within the Old Mutual Group including Old Mutual Life Assurance Kenya Limited, Old Mutual General Insurance Kenya and Old Mutual Investment Group, are not affected and will continue to operate as normal,” the statement reads in part.

The Company reiterated its commitment to promote high standards in all its entities despite the ongoing court case.

CEO Old Mutual Kenya Arthur Oginga. PHOTO/Old Mutual.

“As a responsible corporate entity, we are committed to upholding the highest standards of governance and operational excellence across all our subsidiaries and this commitment remains unwavering,” Old Mutual said.

Additionally, the Company said its focus remains on operating transparently and in the best interests of all our stakeholders.

“We assure our stakeholders that our operations will continue as usual, and we remain focused on delivering value to all our customers and shareholders,” Old Mutual stated.

The company said it is operating with the courts to address the matter which is currently before them but failed to provide details about the progress of the legal proceedings.

“We are addressing this matter through the appropriate legal channels and as it is currently before the court, we are unable to provide detailed comments at this time. We are cooperating fully with the legal process and ensuring that our actions reflect our dedication to transparency and fairness,” the Company said.

Court Stops Sale of UAP Insurance Tanzania

The update comes after the High Court in Nairobi issued orders stopping the current management of Old Mutual PLC from selling assets of the company.

Joel Kamau Kibe, a shareholder in the insurance company, filed a petition challenging Old Mutual’s decision to sell its Tanzanian subsidiary, UAP Insurance Tanzania, for Ksh73.5 million.

Kibe claims that the Capital Markets Authority (CMA) listed Old Mutual after a public offer in November 2012.

He argues that the directors and key shareholders of Old Mutual began disposing of their shares and leaving the company.

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Petitioners Alleges Exclusion of Minority Shareholders

Besides, he argued that the minority shareholders (him included) have been excluded from the decision-making process and management of the company.

Further, Kibe claims that the minority shareholders have been denied access to important company records including financial statements, minutes of board meetings, and other documents.

He states that this violates Section 779 of the Companies Act 2015, which grants shareholders the right to inspect company records and stay informed about company affairs.

“It is therefore evident that the affairs of Old Mutual PLC herein are being conducted in a manner oppressive to some part of its members including the Petitioner,” reads court papers.

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