Resolution Insurance Majority Stake Acquisition
LeapFrog Investments, the private equity firm with a focus on Africa and Asia, said it will pay 1.68 billion shillings ($19 million) to gain control of Kenya’s Resolution Insurance and tap growth in health coverage.
Pamoja Capital, led by Mr. Geoffrey Gangla, Team Leader and Mr. James Wahome, Project Manager, was representing the shareholders on Resolution Health East Africa Limited with regards to the share sale and the rights issue. Pamoja Capital has acted as an advisor to Resolution Health East Africa Limited in other corporate finance assignments since 2010.
Our role as the transaction advisers to the project was to develop and manage the transaction process that fulfilled our clients’ objectives. This covered developing financial models and information memorandum, valuation, managing the due diligence process, transaction structure, co-ordinate other advisors and negotiation with different parties. We were able to guide the shareholders through a complex process and also assist in balancing the commercial interests of all stakeholders up to completion.
The transaction will provide Resolution Health East Africa with the capital required to enable the business execute its long term strategy of underwriting new classes on Insurance products in the markets it currently operates in. The transaction announcement also placed our client as a company that is sufficiently capitalised to take on new insurance business in the coming year 2015. We anticipate that with Leapfrog as an investor our client can leverage on the strong industry knowledge that Leapfrog will provide as well as develop new ideas through Leapfrog Labs.
We were quite pleased to have been able to execute this mandate to not only give existing shareholders an attractive return on their investment into the company but also introduce a strategic investor who will anchor the business as it moves to develop its general insurance portfolio.