FCMB Pensions Limited agrees to the 96% acquisition of AIICO Pensions Limited


Tuesday, June 30, 2020 / 09:15 AM / News / Header Image Credit: Ecographics


Proshare Nigeria Pvt. Ltd.

FCMB Group recently notified the Nigerian Stock Exchange of its agreement to acquire 96% of AIICO Pensions Limited through its pensions arm - FCMB Pensions Limited.


This appears to be part of a deliberate strategy to grow the Group's investment management portfolio and build on the inherent synergies between this and banking. It will be recalled that FCMB Group increased its stake in Legacy Pensions (now FCMB Pensions) to 91.6 percent in 2019 and now has full control of the business.


FCMB Pensions has since grown its assets under management (AUM) to N325 billion with 350,000 customers as at March 2020, while that of AIICO Pensions is estimated at N126 billion with over 240,000. A combined AUM of N451 billion and almost 600,000 customers will take the entire Groups customer base to 8,000,000 and its total AUM (inclusive of all investment management activities) to over N560 billion. In addition, the enlarged pension business will benefit from FCMBs extensive distribution platform, comprising of 200 branches, a strong web and mobile presence; and the recent the launch of its Pensions' online enrolment platform.


Analysts have already seized on the announcement expressing broadly positive views of its impact for both FCMB Pensions and FCMB Group. One investment banking analyst described it as "a positive move and a statement of intent from FCMBs management to leverage its non-banking businesses to drive profitability". Another analyst described this as a "Landmark transaction giving a mid-tier player a great opportunity to bulk up", further remarking that "We believe the combined entity will be better positioned for stronger organic AUM growth and fee income contribution to the Group's performance"


This acquisition is one of several proactive steps, along with digitisation that the company has embarked upon to enhance its market position and competitiveness as the industry braces itself for the commencement of Retirement Savings Account (RSA) portability.


Also Read: FCMB Group Plc - Proposed Acquisition of AIICO Pension Could be Positive


Investment funds' performance is also receiving greater attention especially in the low interest rate environment. In this regard FCMB Pensions has strengthened its investment committee with the addition of Mrs. Titi Odunfa Adeoye to its Board of Directors. Mrs. Adeoye is the Founder and Chief Investment Officer of Sankore. The new Director holds an MBA from Harvard Business School, a BBA in Accounting (summa cum laude) from Howard University and is a Certified Public Accountant (Gold Award). Mrs. Adeoye's skills in investment strategy were honed at firms like Goldman Sachs in New York. Her area of expertise is strategies for the creation, growth and preservation of individual or family wealth with a focus on "alternative" asset classes.


Speaking about Friday's announcement, Mr. Ladi Balogun, Chairman of the Board of Directors - FCMB Pensions, remarked that "the business intends to use its scale to positive effect towards investing in the growth of the Nigerian economy while ensuring safety and the most competitive returns for its customers".


FCMB's One Year Area Chart on Proshare Markets

 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

Related News

1.       FCMB Group Plc - Proposed Acquisition of AIICO Pension Could be Positive

2.      FCMB Announces the Proposed Acquisition of AIICO Pension Managers Limited

3.      AIICO Announces the Proposed Acquisition of Its Subsidiary By FCMB Pension Limited

4.      FCMB Notifies of Dealing in 1m Volume of Shares By Mr. Olufemi Badeji...

5.      FCMB Connects Entrepreneurs To Experts With quot Top-5-In-5 quot Initiative...

6.      FCMB Q1 2020 Results Review Recognizes Pressure on Earnings from Near Term Headw...

7.       FCMB Declares N4.7bn PAT in Q1 2020 Results, (SP:N1.70k)

8.      FCMB Holds Virtual AGM as Shareholders Commend Performance and Approve Dividend

9.      FCMB Group Research Q4 2019 Results Review: Maintaining Neutral Rating

10.   FCMB to Conduct Annual General Meeting By Proxy

11.    FCMB To Hold Its 7th AGM On April 28 2020...

12.   FCMB Declares N17.3bn PAT in 2019 Audited Results, Proposes N0.14k Final Dividend;(SP:N1.50k)

13.   FCMB Issues Explanatory Note on Appointment of Messrs Deloitte and Touche As New Auditors

14.   FCMB Announces Issuance of Commercial Paper of up to N20bn by First City Monument Bank Limited

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News