The Boards of FBN Holdings Plc and Sanlam Emerging Markets (Proprietary) Limited (Sanlam) have announced the completion of the sale of FBN Holdings Plc’s 65% shares in FBN Insurance Limited to Sanlam via a Share Purchase Agreement (“SPA”).
This effectively confers full ownership of FBN Insurance Limited (Life) and its subsidiary, FBN General Insurance Limited on Sanlam forthwith, following receipt of all relevant regulatory approvals.
Both organisations, according to a public notice had activated the Shareholders’ Agreement which provided pre-emptive rights to Sanlam.
Accordingly, and as had been indicated in the SPA, the effective date of the divestment is June 01, 2020.
Commenting on the divestment, UK Eke, Group Managing Director, FBN Holdings Plc in a statement issued last night 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”.
“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,” said Sanlam Emerging Markets (Proprietary) Limited’s Chief Executive Officer, Heinie Werth in the statement.
The statement said the divestment however, has no impact on FBN Insurance Brokers Limited as it remains a wholly owned subsidiary of FBN Holdings Plc. Since its establishment 20 years ago, the firm has continued to provide bespoke Insurance Broking and Advisory Services to the FBN Holdings Group and its customers.
FBN Holdings Plc is foremost African banking and financial services group serving individuals, businesses, organisations and governments in leading markets across the continent and globally. FBNHoldings’ principal subsidiary is First Bank of Nigeria Limited (FirstBank), Nigeria’s foremost financial institution and leading banking services provider. Sanlam is a pan-African financial services company listed on the Johannesburg, Namibian and A2X stock exchanges.