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Tuesday, May 17, 2022

FCMB Group buys 60% stake in AIICO Pension Managers

By Samuel Bankole

Nigeria’s FCMB Group, the holding company of First City Monument Bank and FCMB Pensions Limited on Wednesday announced its acquisition of 60 percent stake in AIICO Pension Managers Limited.

In a regulatory filing with the Nigerian Exchange Group (NGX), FCMB said the acquisition consist 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 goal is to combine the businesses of FCMB Pensions and AIICO Pensions to build a stronger and more resilient business,” the company said in the regulatory statement.

However, the banking and financial group did not disclose the financial consideration for the 60 percent acquisition in the pension administration firm.

In a related filing, AIICO Insurance Plc also notified the NGX that based on the term of the acquisition, only only 33.9 percent of its holding in the pension firm was sold to FCMB Group instead of the 70 percent stake initially indicated in an early filing.

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“FCMB Pensions also bought 26.1 percent stake held by other shareholders in AIICO Pensions thereby making FCMB Pensions a majority shareholder with 60 percent stake in AIICO Pensions.
“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 5 percent 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,” the insurance company said in a seperate regulatory filing.

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