AIICO Insurance Plc, said it has entered into discussions with FCMB Pensions Limited for the divestment of its 70 per cent stake in AIICO Pension Managers Limited.
AIICO’s Head, Strategic Marketing and Communications Department, Segun Olalandu, who revealed this in a statement said the proposed transaction is subject to the approvals of the National Pension Commission (PenCom) and the Federal Competition and Consumer Protection Commission (FCCPC).
According to the Managing Director/CEO, Babatunde Fajemirokun, the divestment was for two reasons and has nothing to do with its recapitalisation plans.
“The first is to unlock the value that is greater than holding the asset as a subsidiary now and in the future. The second is to deploy the ensuing capital in other assets where AIICO has a stronger competitive advantage, thereby maximising long-term value for its stakeholders.”
He noted that the move was not driven by the company’s recapitalisation plans which for its path is nearly complete.
Earlier, FCMB Group and AIICO Insurance had notified the Nigerian Stock Exchange (NSE) and the investing public of discussions for sale of 96 per cent stake of AIICO Pensions Managers to FCMB Pensions.
FCMB Group in a statement signed by Kayode Adewuyi, Chief Financial Officer and Ladi Balogun, its Group Chief Executive Officer, said the proposed acquisition would make AIICO Pensions an indirect subsidiary of FCMB Group.
They said both organisations had entered into discussions with shareholders of AIICO Pension Managers to acquire the 70 per cent stake held by AIICO Insurance and 26 per cent held by some other shareholders in AIICO Pensions.
AIICO Insurance is a leading composite insurer in Nigeria with a record of accomplishment of serving its clients dating back over 50 years.