By Charles Ike-Okoh
FRI, JUN 26 2020-theG&BJournal- FCMB Pensions Limited has entered into discussions with shareholders of AIICO Pension Managers Limited, to acquire 70% stake held by AIICO Insurance Plc and 26% held by some other shareholders in AIICO Pensions.
FCMB Pensions Limited said Thursday in a notification to the Nigerian Stock Exchange and investing public, that the proposed acquisition will make AIICO Pensions an indirect subsidiary of FCMB Group Plc.
The news of the acquisition has been described by analysts as a ‘’significant development’’ amid the COVID-19 pandemic.
‘’It will not only put FCMB Pension in market pole position, it will give it the financial power also to chase after other value-added strategic acquisitions in the future, if it wishes,’’ one analysts told theG&BJournal in Lagos.
AIICO Pensions Managers has over 200, 000 clients and more than N60 billion assets under management, and the deal when completed could stretch FCMB’s assets under management to well above N300 billion.
FCMB Pensions Limited in 2019 acquired Legacy Pension Managers Limited. The acquisition pushed its assets under management to over N220 billion. It currently has over 350,000 pension contributors which it services from 48 locations across the country.
FCMB Pensions Limited is the pension management subsidiary of FCMB Group Plc, a bank-led financial services group with total assets valued at about N1.7 trillion ($4.4 billion).
The proposed transaction is still subject to the approvals of the National Pension Commission and the Federal Competition and Consumer Protection Commission.