Access Golf Seeks to Acquire 81.82% Stake in ARM Pension

Merger with Access Pensions may produce largest PFA with N2.22tn assets

in Abuja

In what could emerge as one of biggest mergers/acquisition in the pension industry, Access Golf Nigeria Limited is seeking to acquire 81.82 per cent of the issued share capital of ARM Pension Managers (PFA) Limited from its majority shareholder, ARM Traditional Asset Management Limited.

The Merger of ARM Pension and Access Pensions will create a pension fund administrator with assets under management (AUM) of just over N2.22 trillion, according to the Federal Competition and Consumer Protection Commission (FCCPC) which vets such union to ensure fair play.

The expected revenue and cost synergies are material and promise significant long-term value.

The enlarged Access Pensions will provide customers with an enhanced service offering, support the rollout of micro pension products and provide a better overall customer experience.

If the deals sails through, Access Pensions may emerge as the large PFA in the country by pension assets under management.

Currently, the largest PFA is Stanbic IBTC Pensions Limited, followed by ARM Pension Managers.

Access Golf is an investment vehicle that owns the majority shareholding in Access Pensions, which is a Pension Fund Administrator (PFA) incorporated in Nigeria and licensed and regulated by the National Pension Commission (PenCom).

Access Pensions' principal activity is pension fund administration involving management of retirement savings account and legacy funds.

Similarly, ARM Pension in addition to Access Pensions activities also offers other pension products and services including retirement advisory, programmed withdrawal; micro pension, and additional voluntary contribution.

Following the acquisition, ARM Pension and Access Pensions which are the merging entities will merge and become one entity.

The merger will be consummated through a Scheme of Merger.

Under the terms of the Scheme, ARM Pension will transfer all its assets, liabilities and undertakings to Access Pensions.

Meanwhile, official industry data showed that Stanbic IBTC Pension Managers Limited, Access Pension Limited, ARM Pension Managers Limited, Trustfund Pensions Limited and Premium Pension Limited are PFAs that account for 56 per cent of pension enrolment.

Stanbic IBTC Pension led the pack with 2,015,150 retirement savings account (RSA) holders, equal to 20.3 percent of the 9.95 million registered contributors as of March 2023, according to PenCom.

Access PFA had 1,064,906 or 10.7 percent of the total registrations, which some market watchers believe is being driven by its successful acquisitions of Sigma Pensions and majority stake in First Guarantee Pensions.

ARM Pensions Limited came third with 896,635 RSA holders or 9 per cent of the total registered contributors.

Trust Fund Pensions Limited enrolled 4,300 participants in the first quarter of 2023, with its total enrolment hitting 801,675 or 8.1 percent of total RSA holders.

Premium Pension Limited came fifth with 778,874 RSA holders or 7.9 percent of the total registered contributors.