FCMB Pensions Targets Growth, Acquires 60% Stake in AIICO Pensions

FCMB Pensions Limited, a subsidiary of FCMB Group Plc, has finally acquired 60 per cent stake in AIICO Pensions Managers Limited, a subsidiary of AIICO Insurance Plc.

Both firms had in June 2020, disclosed that they were in discussions with the aim of FCMB Pensions acquiring 70 per cent of AIICO Pensions from AIICO Insurance ,while 26.3 per cent would be acquired from other shareholders to bring the total of 96.3 per cent.

However, a year after that disclosure, FCMB Pensions was only able to acquire a total of 60 per cent stake in AIICO Pensions Managers.

In a notification to the Nigerian Exchange (NGX) Limited, the FCMB Group said its pension management subsidiary, FCMB Pensions Limited, had received relevant regulatory approvals and concluded the acquisition of a 60 per cent stake in AIICO Pension Managers Limited.

“This is made up of 33.9 per cent stake held by AIICO Insurance Plc and 26.1 per cent 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 per cent 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,” FCMB Group said.

On its part, AIICO Insurance notified the NGX that it had completed the sale of its 33.9 per cent shareholding in AIICO Pensions Managers Limited to FCMB Pensions Limited.

Based on the transaction structure approved by the regulators, only 33.9 per cent of AIICO Insurance’s shareholding in AIICO Pensions was sold to FCMB Pensions instead of the 70 per cent stake indicated in our earlier notification to the exchange. FCMB Pensions also bought 26.1% stake held by other shareholders in AIICO Pensions thereby making FCMB Pensions a majority shareholder with 60 per cent stake in AIICO Pensions.

“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 21, 2015 which states that “no individual, group of individuals or company shall have direct or indirect ownership/shareholding of 5.0 per cent and above in more than one licensed pension fund operator”.