Liberty Holdings expands in Kenya
Potential for wealth productsHemphill said that the company's intention was to enter markets that were benefitting from political and regulatory stability, where there is strong economic growth, and where there is potential for greater penetration on wealth products. "A combination of these factors provides an ideal opportunity to build critical mass in the region," he explained. CfC Life and Heritage are providers of life, health and short-term insurance products in both the Kenyan and Tanzanian markets. "CfC is an ideal platform from which to achieve Liberty's growth objectives of establishing a leading position in the life, health, short term and asset management wealth pillars in East Africa," the statement read.
Acquisition benefitsLiberty expects the medium- to long- term benefits in acquiring control of the business to include:
- As a separate listed entity with Liberty as an anchor shareholder, CfC will benefit from greater focus and the value available from having a strategic shareholder with significant insurance expertise and access to funds for growth;
- CfC will be positioned to benefit from economies of scale, the extraction of synergies between the businesses and from greater capital efficiency, resulting in improved returns for all shareholders; and
- the restructured businesses will provide Liberty with a sound platform for organic and acquisitive growth in Kenya and elsewhere in the region.
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