FBN Holdings Plc has announced that it is planning to divest its 65 per cent stake holding in FBN Insurance Limited.
According to a statement sent to Daily Sun yesterday, the company said it has formally notified the Nigerian Stock Exchange (NSE) of on-going discussions with its partner Sanlam Emerging Markets (the owners of 35 per cent equity in FBN Insurance Limited) regarding the proposed sale of the Company’s 65 per cent equity in FBN Insurance Limited.
The firm stated that the move is in line with the “Group’s strategic objectives” adding that they are currently engaging the regulators for the necessary approvals and assured the Exchange that further announcement will be made if the transaction is concluded.
The statement said, “The proposed divestment is said to be a strategic business decision for FBNH. When completed, the transaction will involve the transfer of FBN Holdings’ 65 per cent stake in FBN Insurance Limited to Sanlam”.
The notification to the NSE is one of the statutory steps required of listed companies when considering a market-sensitive decision or transaction. In deference to Rule 17.5 of the Rule Book of the Exchange 2015, FBN Holdings first notified the market of the development in the Directors’ Report Section of its Audited Financial Statements for the year ended December 31, 2019 which was released to the Exchange on Monday 6, April 2020.
For its Full Year (FY) December 31, 2019, the company posted a Profit Before Tax (PBT) of N84 billion representing a growth of 31 per cent over 2018 PBT of N64 billion. Profit After Taxation (PAT) at N74 billion was a growth of 27 per cent over N58 billion reported for 2018.
The company’s Board of Directors has also recommended the payment of the sum of N13.64 billion (38kobo/share) as dividend to its shareholders representing a growth of 46 per cent over prior year dividend.
According to the company, the proposed divestment will unlock significant value to leverage the Group’s strength in its core business for which it is renowned.