Categories: Business

FCMB Pensions acquires 60% of AIICO Pensions

The ownership structure of AIICO Pensions Managers Limited (AIICO Pensions) has changed with the acquisition of 60 per cent of the company by FCMB Pensions Limited (FCMB Pensions).

This has now made FCMB Pensions, a subsidiary of the FCMB Group, the majority shareholder of the company.

The new company acquired the largest chunk of the company’s equities by purchasing a 33.9 per cent stake from AIICO Insurance and a 26.1 per cent stake from other shareholders.

Initially, FCMB Pensions intended to buy the 70 per cent held by AIICO Insurance, but the regulatory agencies involved in the transaction only approve the sale of 33.9 per cent held by the insurance company.

In line with a directive of the National Pension Commission (PenCom), AIICO Pensions is now a subsidiary of FCMB Group.

It will be recalled that In a circular issued on September 21, 2015, with a reference number of PENCOM/INSP/CIR/SURV/15/03, the regulator had emphasised that “no individual, group of individuals or company shall have direct or indirect ownership/shareholding of 5 per cent and above in more than one licensed Pension Fund Operator.”

This has now made AIICO Pensions cease to be a subsidiary of AIICO Insurance.

AIICO Pensions is one of the major players in the pension industry and its acquisition by FCMB Pensions is expected to boost the earnings of FCMB Group, which trades its equities on the nation’s main bourse.

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