To support growth in asset under management (AUM), FCMB Pensions Limited, a subsidiary of FCMB has underpinned plans to acquire 96 percent in AIICO Pension Limited.
This was disclosed in a notification to the NSE on Friday and the proposed transaction, which will make AIICO Pensions an indirect subsidiary of FCMB Group, is subject to regulatory approvals.
Analysts say the business combination of FCMB Pensions and AIICO Pensions will result in cost synergies that is upside risk for profitability and fee and commission income, and that shareholders are guaranteed a return on investment.
In a release signed by Kayode Adewuyi, Chief Financial Officer, FCMB Group and Ladi Balogun, its Group Chief Executive, which was sent to the Nigerian Stock Exchange on Thursday, the Group told investors that it has entered into discussions with shareholders of AIICO Pension Managers Limited, to acquire the 70 per cent stake held by AIICO Insurance Plc and 26 per cent held by some other shareholders in AIICO Pensions.
“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 stated