BY Oluseyi Awojulugbe
FBN Holdings Plc, the holding company for First Bank of Nigeria, says discussions are ongoing to divest from its insurance arm, FBN Insurance Business Limited.
In a regulatory filing at the Nigerian Stock Exchange (NSE), FBN Holdings said it is in talks with Sanlam Emerging Markets, its partner which holds 35% equity, on the proposed sale of FBN Holdings’ 65% majority equity stake in FBN Insurance Limited.
According to the formal notice sent to the exchange and signed by Seye Kosoko, the company secretary, FBN Holdings said the move was in line with the “group’s strategic objectives” adding that they are currently engaging the regulators for the necessary approvals.
FBN Holdings, however, assured the exchange that further announcement will be made if the transaction is concluded.
When completed, FBN Holdings’ 65% stake in FBN Insurance Limited would be transferred to Sanlam.
The notification to the NSE is one of the statutory steps required of listed companies when considering a market-sensitive decision or transaction.
In deference to Rule 17.5 of the rule book of the Exchange 2015, FBN Holdings first notified the market of the development in the directors’ report section of its audited financial statements for the year ended December 31, 2019, which was released to the Exchange on Monday, April 6, 2020.
Extracts from the audited report for the year ended December 31, 2019, showed that FBN Holdings posted a profit before tax of N84 billion, representing a growth of 31% from the N64 billion recorded in 2018.
Profit after taxation rose by 27% to N74 billion in 2019 as against N58 billion reported in 2018.
The board of directors recommended paying N13.64 billion to investors representing a dividend per share of 38 kobo per share.
FBN Insurance was founded as a life insurer in 2010.
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