FBN Holdings (FBNH) has sold off its remaining 65% stake in its Insurance subsidiary, FBN Insurance to Sanlam, a South African financial services group. Before this sale, Sanlam already had 35% of the Insurance company.
This gives Sanlam 100% ownership of FBN Insurance Limited (FBNI) and its subsidiary, FBN General Insurance Limited.
FBNH had in April announced its plan to divest, stating that it was in line with its “strategic objectives.”
According to FBN Holdings in a notification to the Nigerian Stock Exchange (NSE) on the completion of the sale,
“The boards of directors of FBN Holdings and Sanlam Emerging Markets (Proprietary) wish to announce the completion of the sale and transfer of FBN Holdings’ 65 per cent shareholding in FBN Insurance Limited to Sanlam. This effectively confers full ownership of FBN Insurance and its subsidiary, FBN General Insurance Limited on Sanlam forthwith, following receipt of all relevant regulatory approvals.”
The Group Managing Director, FBN Holdings Plc, UK Eke said “The divestment is in line with the group’s medium to long term strategic objectives. This will ultimately improve our shareholders’ wellbeing and deliver greater value to all the stakeholders.”
“This transaction is in line with our business strategy to deepen our presence in our existing markets and highlights and enhances our long-standing commitment to the Nigerian market. Sanlam exercised its pre-emptive right to acquire the remaining shareholding of FBNI and in line with our partnership philosophy that underpins our business model, we will introduce local shareholding at an appropriate time in the future. This transaction is evidence of our belief and confidence in the value and future of the business as well as the skilled management team and staff. Moreover, we are committed to Nigeria and view it as a key market on the continent. The African continent as a whole remains important and integral part of Sanlam’s growth,” said SEM’s Chief Executive Officer, Mr Heinie Werth.
FBN Holdings said that this divestment has no impact on FBN Insurance Brokers Limited as it remains a wholly-owned subsidiary of the group.
FBN Insurance was started as a JV between Sanlam and FBN Holdings as a life insurer in 2011 and after a successful growth trajectory, expanded into general insurance by establishing FBN General Insurance in 2015.
The effective date for Sanlam taking full control of FBN Insurance was 1 June 2020.
