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Corporate deals

DEAL: VFD Group may take key stake in Abbey Mortgage Bank

@vfdgroup may take a key stake in Abbey Mortgage Bank Plc, through a private placement. Shareholders of the bank gave approval at its AGM held this week.

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Abbey Mortgage Bank to raise capital, Abbey Mortgage Bank to issue shares

Abbey Mortgage Bank Plc may have a new key investor soon, going by some of the resolutions passed at its Annual General Meeting (AGM), which held on Monday. During the event, shareholders approved the following resolutions:

  • That the authorized capital of the company be increased from N3.5 billion to N6 billion by the creation of 5 billion ordinary shares which will rank pari passu with existing shares.
  • That the company be authorized to raise N2.3 billion in capital by way of private placement.
  • Subject to regulatory approval, the private placement shall be by way of sale of 2,261,538,462 ordinary shares at the rate of N1.05 to VFD Group.

If the deal clicks

Abbey Mortgage Bank currently has 4.2 billion shares outstanding. If the private placement is approved, VFD group will be one of the majority shareholders in the company.

Current key shareholders 

Figures from Abbey Mortgage Bank’s 2018 full year financial statements showed that the largest shareholders were Rose Ada Okwechime and Chief Ifeanyichukwu Boniface Ochonogor. Okwechime is the founder and Managing Director.

Okwechime has a 30% stake through her personal holdings and Madonna Ashib Comm. Enterprise Ltd. Ochonogor holds a 30.75% stake through his personal holdings and Forte Properties & Investment Ltd.

Earlier moves

In an exclusive interview with Nairametrics last year, CEO of the group, Nonso Okpala, had hinted at plans of getting into the banking space.The firm had also raised N2.7 billion through a rights issue and private placement.

About VFD Group

VFD Group was incorporated with the Corporate Affairs Commission (CAC) on 7 July, 2009 and commenced business operations effectively on 1 January, 2011.

The company’s subsidiaries include VFD Microfinance Bank, Everdon Bureau De Change, and Anchoria Asset Management

About Abbey Mortgage Bank

The bank was incorporated in Nigeria as a private limited liability company on 26 August 1991 and obtained its license to operate as a mortgage bank on 20 January, 1992. It commenced business on 11 March, 1992 and later converted to a public limited liability company in September 2007.

Deal book 300 x 250

On 21 October 2008, the bank became officially listed on the Nigerian Stock Exchange. On 16 January, 2014, it changed its name from Abbey Building Society Plc to Abbey Mortgage Bank Plc.

The bank last traded on the 11th of July, 2019 at N0.90 per share. Year to date, the stock is down 8.16%.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

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Corporate deals

DEAL: Tangerine Life completes take-over of ARM Life Insurance Plc

Tangerine Life Insurance has concluded the acquisition of ARM Life Plc.

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Tangerine Life Insurance, a subsidiary of Verod Capital Limited has concluded the acquisition of ARM Life Plc.

This is according to a press release issued by the firm’s Head, Brand and Communications, Olabisi Adesokan, seen by Nairametrics.

The merger is expected to consolidate and optimize the unique strengths of both sides, both in the corporate and retail markets, creating a stronger and broader insurance and financial services platform that will be of immense benefits to all.

READ: Buhari reappoints Bala Usman as MD of NPA, reconstitutes the Board

Background of the deal

A decision to complete the acquisition of ARM Life Insurance Plc was reached at Tangerine’s Board Meeting held on 4th of March, 2020, where the provisions of section 131 of the Investment and Securities Act (ISA) 2007 was triggered.

Provisions in section 131 of ISA 2007 had empowered Tangerine Life Insurance to takeover ARM Life, following its 77.72% equity stake held in the latter, which translates to 7,392,953,710 ordinary shares.

In lieu of this, a decision to buy-out the remaining stake of 2,180,967,082 ordinary shares at N0.63 was ratified at the Board meeting and subsequently implemented.

READ: Report any employer without Group Life Insurance for employees – PenCom

Deal book 300 x 250

What they are saying

Commenting on the rationale behind the deal, the Managing Director of Tangerine Life, Livingstone Magorimbo said: “Integrating the businesses has presented us a tremendous opportunity to enhance our capabilities, improve operating efficiencies and grow our businesses.

“At Tangerine Life, we will continue to innovate, drive positive change within the insurance industry and create tremendous value for our customers towards effectively positioning our business to stay ahead of the next wave of industry evolution.”

On the other hand, a former Managing Director at ARM Life, Stephen Alangbo added that: “Innovation is paramount in ensuring customer satisfaction in today’s business landscape. We believe that the combination of both entities will ensure exceptional value creation for existing and new customers and partner.”

What you should know

  • According to the press release, the merger places Tangerine Life as the 4th largest life insurer in Nigeria and position it for future growth.
  • Tangerine Life Insurance Limited, formerly known as Metropolitan Life Insurance Nigeria Limited was incorporated on 19 August 2004 and licensed by NAICOM on 14 February 2007. It is principally engaged in the provision of group life, credit life and individual life products to over 12,000 blue-chip corporate and retail clients.
  • The Company is majorly owned by Oreon LMS Limited, a subsidiary of Verod Capital Growth Fund II, a US$115 Million private equity fund managed by Verod Capital Management Limited.

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Corporate deals

DEAL: FMDQ Exchange admits Parthian Partners Limited’s Commercial Paper worth N20 billion

FMDQ has ratified the admission of Parthian Partners Limited’s N20 billion Commercial Paper.

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Dangote cement, FMDQ changes company name, FMDQ Clear Limited, Securities and Exchange Commission

The Board Listings, Market and Technology Committee of FMDQ has ratified the admission of Parthian Partners Limited’s commercial paper worth N20 billion into the FMDQ Exchange platform.

This is according to a verified tweet by FMDQ Exchange, which reads; “FMDQExchange is pleased to announce the approval for the registration of the Parthian Partners Limited ₦20.00 billion Commercial Paper Programme on its Platform.’’

Prior to the recent admission, Nairametrics had earlier reported that a total of six (6) commercial papers valued at N22.29 billion have been admitted to FMDQ platform since the beginning of this year, with the latest being the admission of Coronation Merchant Bank’s CP series worth N3.63 billion.

Recall that since 2014, FMDQ Exchange has continued to champion the reform of Commercial Papers market, in collaboration with the CBN and through the deployment of key initiatives and strategies, part of which made it possible for the Exchange to cross the N1 trillion mark in 2018.

What this means

  • Nairametrics understands that Parthian Partners Limited, just like other issuers quoted on the FMDQ Exchange, will enjoy some value-driven services such as; gaining access to a wide range of knowledgeable and capitalised investors, enhanced liquidity among others.
  • The Commercial Papers will enable Parthian Partners Limited plug its capital shortfalls and meet up with its short-term liquidity, sustaining its business through the process.

What you should know

  • It is pertinent to note that Commercial Papers quoted on FMDQ’s platform are quoted on FMDQ and traded on the FMDQ-Bloomberg E-Bond Trading and Surveillance System
  • FMDQ Debt Market size as at close of business on 23rd of February, 2021 currently stands at N23.07 trillion.

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