United Capital plc, an African investment banking and financial services firm, has completed the sale of its 50 percent holding in United Metropolitan Life, a joint venture established in 2005, to its joint venture partner, Metropolitan International Holdings (Proprietary) Limited.
“This marks the conclusion of a very successful investment. Our objective is always to maximise shareholder return, and we look forward to redeploying the capital in further ventures. We remain strongly convinced of the opportunities in the Nigerian financial services sector.
“I would also like to take the opportunity to thank Metropolitan International, who have been an excellent joint venture partner and wish them well in the future. This partnership has led the way in South African and Nigerian businesses working together for the benefits of Africans. Through this partnership, we established a pioneering insurance business, which has led in customer satisfaction and product innovation,” Oluwatoyin Sanni, group CEO, United Capital, said.
The divested business employs 98 staff and had revenues and after tax profits of N2.2 billion and N674 million, respectively, in the last reporting period ended December 2015. The divestment will not result in any disruption to customers, with all steps being taken to ensure continuity.
The purchase consideration for the shares in United Metropolitan Nigeria Life amounts to N3.25 billion and the transaction closed on May 10, 2016. The all-cash transaction is expected to lead to a capital gain, in accounting terms, of N1.5 billion.
All requisite regulatory approvals have been obtained and the Nigerian Stock Exchange has since been notified of the divestment.
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