FCMB acquires 60% stake in AIICO Pensions

FO LL OWING REGULATORY APPROVAL, FCMB Pensions Limited, a subsidiary of FCMB Group Plc, has acquired a majority stake in AIICO Pension Managers Limited, a regulatory disclosure statement signed by Kayode Adewuyi, chief financial officer, FCMB, and Ladi Balogun, group chief executive, accessed by Business a.m. shows.

The deal will see FCMB Pensions Limited take control of a 60 percent stake ( representing 33.9 percent stake held by AIICO Insurance Plc and 26.1 percent stake held by other shareholders) in AIICO Pension Managers Limited and make the Pension Fund Administrator an indirect subsidiary of FCMB Group Plc.

The acquired stake also represents a cut back from the initial planned 96.3 percent stake - 70 percent stake held by AIICO Insurance Plc and 26.3 percent of minority-controlled shares - in a notification to the Nigerian Exchange Group on 25th June 2020 to comply with the transaction structure approved by regulators. In a notification sent to the Nigerian Exchange (NGX), FCMB said: “FCMB Group Plc hereby notifies the Nigerian Exchange Limited that its pension management subsidiary, FCMB Pensions Limited, has received relevant regulatory approvals and concluded the acquisition of a 60 percent stake in AIICO Pension Managers Limited. This is made up of 33.9 percent stake held by AIICO Insurance Plc and 26.1 percent stake held by other shareholders in AIICO Pensions. “The acquisition makes AIICO Pensions an indirect subsidiary of FCMB Group Plc. The acquired stake was reduced from the initial 96.3 pension stake in our notification to the NGX on 25 June 2020 to comply with the transaction structure approved by regulators. The goal is to combine the businesses of FCMB Pensions and AIICO Pensions to build a stronger and more resilient business.”

Ladi Balogun, chairman, FCMB Pensions, said the business intends to use its scale to positive effect towards investing in the growth of the Nigerian economy, while ensuring safety and the most competitive returns for its customers.

On its part, AIICO Insurance Plc, in a separate disclosure filed to the NGX stressed that only 33.9 percent of AIICO Insurance’s shareholding in AIICO Pensions was sold to FCMB Pensions instead of the 70 percent stake indicated in the earlier notification to the exchange. As such, AIICO pointed out that the transaction is subject to merger of both PFAs

The statement read in part, “Pursuant to Rule 17.6 of the Issuers Rules, Rulebook of the Nigerian Exchange Limited (NGX) 2015 and following the obtention of all relevant regulatory approvals, AIICO Insurance Plc hereby notifies the Exchange of the completion of the sale of AIICO Insurance’s 33.9 percent shareholding in AIICO Pensions Managers Limited to FCMB Pensions Limited. “In line with the approval from the National Pension Commission (PENCOM), the transaction is subject to a merger of AIICO Pensions and FCMB Pensions. This is in compliance with the PENCOM’s circular ref: PENCOM/INSP/CIR/ SURV/15/03 of September 21st, 2015 which states that no individual, group of individuals or company shall have direct or indirect ownership/shareholding of 5 percent and above in more than one licensed Pension Fund Operator.

“Therefore, following this sale, AIICO Pensions ceases to be a subsidiary of AIICO Insurance and has now become an indirect subsidiary of FCMB Group Plc.”