‘Why AIICO Insurance is divesting’
The divestment of AIICO Insurance Plc from AIICO Pension Managers Limited is not driven by the company’s recapitalisation plans, the Managing Director/CEO, Babatunde Fajemirokun, has said.
Fajemirokun, in a statement in Lagos, stated that the company divested for two reasons.
He explained that the first is to unlock the value that is greater than holding the asset as a subsidiary.
The second, he said, is to deploy the capital in other assets where AIICO has a stronger competitive advantage, thereby maximising the long-term value for its stakeholders.
He said while AIICO has entered into discussions with FCMB Pensions Limited for the divestment of AIICO Pension, the proposed sale would see an uptake of AIICO’s 70 per cent stake in the company.
He further stated that the proposed transaction is subject to the approvals of the National Pension Commission (PenCom) and the Federal Competition and Consumer Protection Commission (FCCPC).
He noted that AIICO Insurance is a leading composite insurer with a record of serving its clients that dates back over 50 years.