By InvestAdvocate
Lagos (INVESTADVOCATE)-Insurer, International Energy Insurance Plc (IEI) said it will divest its 81 percent equity stake from its pension subsidiary, IEI-Anchor Pension Manager.
“We refer to Section 1.10 (b) (v) of the National Insurance Commission (NAICOM) Operational Guidelines (Insurers & Reinsurers) prohibiting Insurance companies in Nigeria from investing more than 25% of the proceeds of public offers and private placements of shares in non-insurance related companies or ventures,” according to the company’s corporate action with the Nigerian Stock Exchange (NSE).
According to insurer, in compliance with the Guidelines and the urgent need to recapitalise the, its shareholders at its thirty ninth Annual General Meeting (AGM) November 26, 2010 resolved that IEI Plc shall divest its interest in non-insurance subsidiaries including IEI-Anchor Pension Managers Limited. “Efforts were subsequently made by the previous board and management to sell off the company’s shares in IEI Anchor Pension Ltd. However, this could not be concluded owing, inter a/ia, to lack of approval from National Pension Commission for sale to the preferred bidder whose Group also has a custodian,” the company disclosed.
IEI said on assumption of duties, and after an assessment of the state of the company, which was dire, the interim board took steps to effectively and transparently divest the company’s interest in IEI Anchor in three stages as follows:
- The Valuation stage — The valuation stage was competitively carried out and Meristem Securities limited selected to carry out the valuation exercise after approval was obtained from NAICOM.
2 The Expression of Interest stage — which has seen seventeen (17) companies express their interest for the acquisition of lEl’s interest in IEI Anchor (a schedule listing the EOl’s is herewith attached as Appendix 1). The services of a Financial Adviser would be required to evaluate all the EOI’s
and conduct a transparent bidding process in order to recommend a preferred bidder to the Board. The following reputable professional firms were invited to submit proposals and were selected on the basis of their relevant experience and knowledge of the Pension Sector
- Meristem Securities Limited
- Kauthar Resources Nigeria Limited
- Zenith Capital Limited
It affirmed that upon recommendation by the executive management, the board selected Kauthar Resources Nigeria Limited to provide transaction advisory services on the bidding process.
- The Final disposal stage — this stage will follow on conclusion of the selection process subject to notification and approval of relevant Regulators.
“To this end, while we have sought the approval of NAICOM to proceed with the
disposal and have notified the Securities & Exchange Commission (SEC) to enable us receive approval for the disposal of IEI Plc’s 81 percent equity shareholding in IEI-Anchor Pension Managers Limited,” IEI added.
