First Bank of Nigeria has sold its remaining 65% stake in FBN Insurance to Sanlam, South Africa’s largest insurance company. With this sale, FBN has exited insurance business.
According to a First Bank statement, FBN Holdings Plc and Sanlam Emerging Markets Limited have completed the sale and transfer of FBNH’s 65 percent in FBN Insurance limited.
This effectively confers full ownership of FBN Insurance Limited and its Subsidiary, FBN General Insurance Limited on Sanlam forthwith, following receipt of all relevant regulatory approvals.
The statement signed by the Group Managing Director, U.K. Eke, for FBN Holdings Plc and Heine Werth, Chief Executive Officer, for Sanlam Emerging Markets, both organization said they have activated the Shareholders Agreement which provided pre-emptive rights to Sanlam.
“Accordingly, and as had been indicated in the Share Purchase Agreement, the effective date of the divestment is June 01, 2020,” they stated.
Speaking on the divestment, 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”.
Mr. Heinie Werth said “Over the years we have enjoyed a mutually beneficial partnership with FBNH, and we will continue to cooperate with them in the future.
“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.”
