French financier Proparco acquires shares in Mauritian magnate Dominique Galea-led insurer, MUA Ltd.

Omokolade Ajayi -

As part of its efforts to consolidate its investment portfolio, French financier Proparco has finalized the acquisition of a $10-million equity stake in MUA Limited, a leading regional insurer led by Mauritian magnate Dominique Galea.

The acquisition is a watershed moment in the strategic investor’s relationship with the regional insurance group. It will see Proparco become the group’s largest international investor of its kind.

The insurer’s chairman, Dominique Galea, presently owns 6.33 percent of the Mauritian insurer.

As the new shareholder, Proparco will take ownership of 4.1 million shares in MUA. This is a strong vote of confidence in MUA’s growth ambitions and the start of a long-term partnership that will strengthen its financial capacity to improve insurance coverage and increase market share.

While commenting on the deal, Bertrand Casteres, the outgoing CEO of MUA, stated that MUA’s partnership with Proparco truly begins when all the final regulatory steps are finalized.

“By strengthening the group’s financial capacity, we aim to grow insurance coverage in the East African region and to reach our sustainability objectives,”  he said

As part of the move to be involved in MUA’s operations as a going concern, Proparco will appoint one board member to the Mauritian insurer’s board and will play a key role in strengthening the insurer’s financial capacity and supporting its sustainability initiatives.

The reputable international investor will leverage its significant regional experience, world-class capabilities, and extensive cross-sector network to create shared wealth for all stakeholders through this strategic alliance, allowing MUA to broaden its operations.

The addition of MUA to Proparco’s investment portfolio will strengthen its position in the East African market, which it entered in 2014 with the acquisition of Phoenix Transafrica Holdings, which traded as Phoenix East Africa Limited in Kenya, Tanzania, Uganda, and Rwanda.