NIGERIA – AXA Mansard Insurance Plc, one of Nigeria’s leading insurance companies, has sold its entire stake in its subsidiary, AXA Mansard Pension Limited, to Eustacia Limited- a member of the Verod Group.
Axa Mansard in a statement explained that the move was in line with its plan to focus on and grow its insurance businesses across all parts of the country.
In his reaction, the CEO of AXA Mansard Insurance Plc, Kunle Ahmed, said that this transaction marks a new step in the insurance firm’s broader strategy to focus on and grow their life, property & casualty and health businesses.
Ahmed said that the AXA Group sees great potential in the Nigerian insurance market and believes they are ideally placed to capture these opportunities due to its market leadership position.
The Insurance giant disclosed that that Eustacia Limited was selected as the preferred bidder, after the completion of a bid process.
Axa Mansion Insurance Plc held a 60 percent stake in the pension subsidiary which along with the 40% stake controlled by the minority stakeholder has now been transferred to Eutacia Limited.
According to the statement from the Insurerer, Messer Rand Merchant Bank acted as the Financial Advisers while Aluko & Oyebode acted as the Legal Advisers on the transaction.
On his part, the CEO of AXA Mansard Pension Limited said that they are confident about Verod’s strong commitment to providing the company with the requisite support to actualize their promise to its clients and stakeholders.
“We strongly believe that this is the ideal time to enter the market and that AXA Mansard Pensions provides an excellent beachhead from which to establish a consolidated position and gain market share.’’ Eric Idiahi, Partner at Verod Group, said.
The insurance firm, also in its statement said that the divestment has received letters of no objection from the National Insurance Commission (NAICOM), National Pension Commission (PENCOM) and the Federal Competition & Consumer Protection Commission (FCCPC).
It should be noted that the completion of the divestment is, however, subject to the receipt of the final approval of the National Pension Commission.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE