FCMB Pensions Ltd, a subsidiary of FCMB Group Plc, has commenced the proposed acquisition of AIICO Pension Managers Ltd.
AIICO Insurance Plc notified the Nigerian Stock Exchange that AIICO has entered into discussions with FCMB Pensions Limited, for the sale of 70% stake in its Pension Management subsidiary, AIICO Pensions Managers Limited.
The proposed sale is AIICO’s stake of 70% and other shareholders stakes of 26% thus bringing the cumulative sale of 96% stake to be purchased by FCMB Pensions.
At the conclusion of the proposed sale, AIICO Pensions shall cease to be a subsidiary of AIICO Insurance Plc. The proposed transaction is subject to the approvals of the National Pension Commission and the Federal Competition and Consumer Protection Commission.
See Also: List of insurance companies in Nigeria.
In a statement to the Nigerian Stock Exchange FCMB Group said, “FCMB Group Plc hereby notifies the Nigerian Stock Exchange (NSE) and the investing public that its pension management subsidiary, FCMB Pensions Limited has entered into discussions with shareholders of AIICO Pension Managers Limited (AIICO Pensions), to acquire the 70% stake held by AIICO Insurance Plc and 26% held by some other shareholders in AIICO Pensions. The proposed acquisition will make AIICO Pensions an indirect subsidiary of FCMB Group Plc,” FCMB Group said in its statement to the Nigerian Stock Exchange.
FCMB Group did, however, explain that the proposed transaction is still subject to regulatory approvals, particularly approvals from the Federal Competition and Consumer Protection Commission as well as the National Pension Commission.
Meeting The Capitalization Requirement
However, in a bid to meet the new recapitalisation requirement that was set by the National Insurance Commission, NAICOM, AIICO Insurance Plc has been raising capital through various means.
AIICO Insurance Plc has been trying to raise capital and one of their options was seeking the approval of the Nigerian Stock Exchange to list some 4.3 billion ordinary shares of N0.50 each.
Moreover, in Q1 2020, AIICO Insurance grew its gross premium by 22.5% to N17.6 billion from N14.3 billion in Q1 2020. Profit after tax also grew by 82.8% to N1.9 billion during the quarter under review.