FCMB Pensions has entered into discussions with AIICO pension for the acquisition of the latter, FCMB Group has said.
The pension management subsidiary plans to buy 70% stake held by AIICO Insurance and 26% held by some other shareholders in AIICO Pensions, in a total 96% ownership.
“The proposed acquisition will make AIICO Pensions an indirect subsidiary of FCMB Group Plc,” said FCMB Group Plc.
Read also: FCMB Pensions challenges market leaders with acquisition of AIICO Pensions
AIICO Insurance in a separate statement confirmed that both parties are currently in talks.
The proposed sales come amid industry-wide recapitalization for insurers which has been extended till 2021.
However, sector regulator NAICOM expects insurance providers to meet 50% of new minimum capital by 2020 end while reinsurance providers must meet 60%.
This means N4billion for Life, N5billion for General, N9billion for Composite and N12billion for Reinsurance by December 2020.
AIICO Insurance two weeks ago submitted an application to NSE for the approval and listing of 4.36 billion ordinary shares 4.3 billion ordinary shares of N0.50 each of Fifty Kobo (N0.50) each at Eighty Kobo (N0.80) per share, on the basis of five (5) new ordinary shares for every thirteen (13) ordinary shares held.
The intended purchase of AIICO Pension By FCMB Pension is subject to the approval of the National Pension Commission and the Federal Competition and Consumer Protection Commission.
In the first quarter of 2020, AIICO Pensions posted a profit of N22.3 million, around 54% lower than in the comparable period a year ago.
