https://www.businessdail...053834-lyb8m3/index.html Financial services giant Old Mutual has failed to take an extra 6.5 per cent stake in UAP Holdings after a plan of converting the multinational’s Sh2.6 billion loan to the Kenyan insurer into shares was suspended. UAP had announced that the loan-to-equity deal, meant to ease its debt burden, would be concluded in 2018 but the multinational has suspended the transaction indefinitely even as it amended the terms of the debt. With the proposed deal shelved, UAP’s debt burden grew in the year ended December and saddled the company with higher finance costs, contributing to the Sh518 million loss in the period. Its borrowings rose by Sh258 million to Sh11 billion in the review period while its finance costs increased by Sh245 million to Sh1 billion. Old Mutual provided the additional debt. “There was an additional drawdown of an Old Mutual loan facility that was put in place in 2017,” Mr Mwangi said. The proposed debt-to-equity transaction was part of UAP’s efforts to ease its heavy debt burden that had seen it explore multiple options, including renegotiating loan terms with financiers such as the International Finance Corporation (IFC). UAP had taken the loan to fund construction of Equatorial Towers –an office building in Juba, South Sudan.

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