PORT LOUIS - Mauritius Union Assurance Company said on Tuesday shareholders of rival National Mutual Fund (NMF) had given it the green light to buy a controlling stake.

Mauritius oldest insurance company, MUA, which has around 4.5 billion rupees ($151 million) under management as at September, said the rival's shareholders had approved the sale of 88.56 percent although it had wanted 97.14 percent.

Should the above transaction become effective MUA will hold 91.42 percent of the share capital of NMF after consolidating its existing 2.86 percent ownership of the latter company, a statement said.

NMF was established in 1990 as a joint venture between a local private insurance company and some government-owned firms and owns two funds, the NMF General Fund and NMF Property Trust.

MUA said the bid is inline with its strategy to seize growth opportunities and offers local investors an opportunity to access a range of assets with diversified risk profiles.

Shares in MUA rose 2.08 percent to trade at 98.0 rupees at 1120 GMT. MUA posted a net profit of 170.5 billion rupees for the quarter ended Sept. 30 compared with 98 billion rupees during the same period last year. ($1=29.90 Mauritius Rupees) (Reporting by Jean Paul Arouff; Editing by Chijioke Ohuocha and Mike Nesbit)