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AIICO Pensions becomes indirect subsidiary of FCMB Group

…as AIICO Insurance completes sale of its 33.9% shareholding in AIICO Pensions to FCMB Pensions

AIICO Insurance Plc (AIICO Insurance) has notified the Nigerian Exchange Limited (NGX) of the completion of the sale of AIICO Insurance’s 33.9percent shareholding in AIICO Pensions Managers Limited (AIICO Pensions) to FCMB Pensions Limited (FCMB Pensions).

The notification is 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.

Based on the transaction structure approved by the regulators, only 33.9percent of AIICO Insurance’s shareholding in AIICO Pensions was sold to FCMB Pensions instead of the 70percent stake indicated in our earlier notification to the Exchange.

FCMB Pensions also bought 26.1percent stake held by other shareholders in AIICO Pensions thereby making FCMB Pensions a majority shareholder with 60percent stake in AIICO Pensions.

Read also: Pension contributors get new window as Sigma launches non-interest fund

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 5percent 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.

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