FCMB Pensions Limited, one of the subsidiaries of the First City Monument Bank Group Plc, has acquired a 60 percent stake in AIICO Pension Managers Limited, taking control of the subsidiary of AIICO Insurance Plc.
FCMB’s Chief Financial Officer, Kayode Adewuyi, stated on Wednesday that the acquisition follows relevant regulatory approvals.
According to the deal, FCMB pensions acquired a 33.9 percent stake held by AIICO Insurance Plc and 26.1 percent stake held by other shareholders in AIICO Pensions.
FCMB Pension Limited, had in June 2020, announced that it is in talks with AIICO Pensions to acquire a total of 96.3 percent stake in the company.
The initial deal would have seen FCMB Pensions acquire 70 percent stakes held by AIICO Insurance Plc and 26 percent stake held by other stakeholders in AIICO Pensions.
The Bank stated, “FCMB Group Plc hereby notifies the Nigerian Exchange Limited (“NGX”) that its pension management subsidiary, FCMB Pensions Limited (“FCMB Pensions”) has received relevant regulatory approvals and concluded the acquisition of a 60 percent stake in AIICO Pension Managers Limited (“AIICO Pensions”).
“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 percent 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 Pensions Limited (formerly Legacy Pension Managers Limited) is a private limited liability company incorporated on 7th of April 2005. It is duly licensed by the National Pension Commission (PenCom), to carry on business as a Pension Fund Administrator (PFA) as defined under the Pension Reform Act, 2014. FCMB Pensions is a subsidiary of FCMB Group Plc.
AIICO Pension Managers Limited is licensed by the National Pension Commission (PenCom), to carry on business as a Pension Fund Administrator (PFA). It has over N140 billion assets under management comprising retirement savings accounts, retiree accounts as well as privately managed pension funds for institutions. It has over 240,000 pension contributors.
AIICO Insurance confirmed the announcement on Wednesday with a notification to the Nigerian Exchange Limited and the investing public that it had sold 33.9 per cent of its shareholding in AIICO Pensions which added to the 26.1 per cent FCMB bought from other shareholders in the company made FCMB a majority shareholder. This was lower than a 70 per cent stake earlier stated to the NGX.