AIICO Insurance Plc on Tuesday said the move to divest its 70 per cent stake in AIICO Pension Managers Limited to FCMB Pensions Limited had nothing to do with its recapitalisation plans.
The company said this in a statement by Mr Segun Olalandu, Head, Strategic Marketing and Communications Department, made available to the News Agency of Nigeria (NAN) in Lagos.
He quoted Mr Babatunde Fajemirokun, the Managing Director /CEO of AIICO, as saying that the proposal was for two reasons.
'The first is to unlock the value that is greater than holding the asset as a subsidiary now and in the future.
'The second is to deploy the ensuing capital in other assets where AIICO has a stronger competitive advantage, thereby maximising long-term value for its stakeholders,' Fajemirokun was quoted in the statement.
According to the managing director, the move is not driven by the company's recapitalisation plans which, on its own, is nearly completed.
The statement reiterated that AIICO was in discussions with FCMB Pensions Limited for the divestment of its 70 per cent stake in AIICO Pension Managers Limited.
It explained that the proposed transaction was subject to the approval of the National Pension Commission (PenCom) and the Federal Competition and Consumer Protection Commission (FCCPC).
AIICO Insurance is a leading composite insurer in Nigeria with a record of accomplishment of serving its clients for over 50 years.
Founded in 1963, AIICO provides life, health and general insurance, and investment and pension management services as a means to create and protect wealth of individuals, families and corporate customers.
Recall that FCMB Group and AIICO Insurance had on Friday notified the Nigerian Stock Exchange (NSE) and the investing public of discussions for sale of 96 per cent stake of AIICO Pensions Managers to FCMB Pensions.
This is disclosed in separate statements by FCMB Group and AIICO Insurance posted on the Exchange website.
FCMB Group in a statement signed by Mr Kayode Adewuyi, Chief Financial Officer and Mr Ladi Balogun, its Group Chief Executive Officer, said the proposed acquisition would make AIICO Pensions an indirect subsidiary of FCMB Group.
They said both organisations had entered into discussions with shareholders of AIICO Pension Managers to acquire the 70 per cent stake held by AIICO Insurance and 26 per cent held by some other shareholders in AIICO Pensions.
According to the statement, the proposed transaction is subject to the approvals of the National Pension Commission and the Federal Competition and Consumer Protection Commission.
'We shall notify the NSE and the investing public once the relevant approvals for the transaction are received,' it said.
In the same vein, AIICO, in a statement signed by the Company Secretary, Mr Donald Kanu, said at the conclusion of the proposed sale, AIICO Pensions shall cease to be a subsidiary of AIICO Insurance Plc.
'The proposed sale is AIICO's stake of 70 per cent and other shareholders stakes of 26 per cent thus bringing the cumulative sale of 96 per cent stake to be purchased by FCMB Pensions,' Kanu said.
He said that the company would notify NSE once the relevant approvals for the transaction were received.
© Pakistan Press International, source Asianet-Pakistan