FCMB Pensions Ltd a subsidiary of FCMB Group Plc continues to wax stronger as it opens acquisition talks with shareholders of AIICO Pension Managers Ltd, E-nigeria! reports
The company wants to acquire 70% stakes in AIICO Pension Managers Ltd which is currently held by AIICO Insurance Plc, the parent company. An additional 26% stake in AIICO Pension (which is held by other shareholders) would also be acquired by FCMB Pensions Ltd, thereby bringing the proposed acquisition to 96% stake.
Separate statements made available to the Nigerian Stock Exchange by both FCMB Group Plc and AIICO Insurance Plc confirmed this development. But neither statement gave any reason for the proposed sale/acquisition.
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.
“FCMB Group Plc (FCMB Group) hereby notifies the Nigerian Stock Exchange (“NSE”) and the investing public that its pension management subsidiary, FCMB Pensions Limited (“FCMB Pensions”) 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 NSE.
Meanwhile, part of the statement by AIICO Insurance Plc said:
“AIICO Insurance Plc (AIICO) hereby notifies the Nigerian Stock Exchange (“NSE”) that AIICO has entered into discussions with FCMB Pensions Limited (“FCMB Pensions”), for the sale of 70% stake in its Pension Management subsidiary, AIICO Pensions Managers Limited (“AIICO Pensions”) to FCMB Pensions 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.”
AIICO Insurance stock opened today’s trading on the Nigerian Stock Exchange at N0.97. Year to date, the share price has gained about 46%, up from N0.60 recorded in January this year.