- An investment company, FCMB Group, is now the majority owner of AIICO Pension Managers Limited after taking over 60% stake in the company
- FCMB Pensions Limited made the acquisition on behalf of its parent company after buying stake from AIICO Insurance and other shareholders
- Regulators approved the acquisition, but the proposed stake offered by FCMB Pensions was reduced significantly
FCMB Group has acquired pension manager, AIICO Pension Managers Limited after it received relevant regulatory approvals to support its bid.
The investment company made the acquisition through its pension management subsidiary, FCMB Pensions Limited, but it hit a stumbling block with the number of shares it proposed.
Regulator breaks acquisition stake of FCMB
FCMB initially planned to acquire a 96.3% stake as stated in its notification to the investing public and Nigerian Exchange Limited on June 25, 2020.
The stake was cut by regulators, enabling FCMB Pension to only acquire a 60% stake in AIICO Pension Managers Limited in order to comply with the approved transaction structure.
The breakdown of the stake showed that 33.9% stake held by AIICO Insurance Plc and 26.1% owned by other shareholders in AIICO Pensions were purchased.
What FCMB is saying about acquisition
In a statement announcing the acquisition and obtained by Legit.ng, the acquirer said:
"FCMB Group Plc hereby notifies the Nigerian Exchange Limited (NGX) that its pension management subsidiary, FCMB Pensions Limited (FCMB Pensions) has received relevant regulatory approvals and concluded the acquisition of a 60% stake in AIICO Pension Managers Limited (AIICO Pensions)."
It added that the plan is to combine the businesses of FCMB Pensions - which has assets under management (AUM) worth N325 billion as of March 2020 - and AIICO Pensions, which has an AUM estimated at N126 billion.
Chisco Express founder to acquire father's business
In other acquisition news, Legit.ng had previously reported that Obinna Anyaegbu, the founder of Chisco Express, has made it known that he plans to acquire Chisco Transport.
Chisco Transport is owned by Chidi Anyaegbu, the founder of Chisco Group. Obinna said he is raising funds to support its acquisition bid.
The acquisition will cost Obinna a fortune as Chisco Transport has an infrastructure worth $25 million. His company was established in 2020.