The Group Managing Director, Capital Express Holdings, Yinka Obalade, has announced that the company would be selling some off its assets in Africa as part of its strategies to focus on its Nigerian operations.
The company said its foreign assets would be sold by the first quarter of 2020 but its subsidiary in Kenya would remain operational.
Why Capital Express is selling: The company is reviewing its growth plan in Nigeria as the insurance industry is embarking on the recapitalisation plan as directed by the National Insurance Commission (NAICOM) and the Federal Government.
The cash from the sales of its foreign assets will be disbursed for the acquisition of firms in Nigeria. The acquisition will increase the capacity of the company’s life insurance operations.
The sale is also expected to strengthen other operations of Capital Express Holdings, which include Asset Management, Investment Banking, Commodity Trading, Trusteeship and Franchising.
The company’s shareholders have already backed the downsizing of its foreign assets which will reposition its competitiveness in all its areas of operations.
“The acquisition will be an addition to the funds which the Holding Company is injecting in the first instance into the company. Our other areas of business like Asset Management, Investment, Banking, Trusteeship e.t.c. would also be beneficiaries of the funds towards repositioning the entire brand for greater competitiveness in all its areas of operations,” Obalade said in a The Nation report.
Other options were considered: While the final decision was to sell its foreign assets, Obalade said other options – which he didn’t mention – were considered, but selling the assets holds more value for the shareholders and the company.
“The sales process of some of the companies are already concluded while others are being finalized to ensure they that the deadline of first quarter 2020 is met.
“The Board discussed other options before arriving at the conclusion to sell its overseas operations. The board, having reviewed all options urged the group to ensure higher return on for investors and the funds injected in these companies should make it a brand to be reckoned with in its areas of operations,” Obalade disclosed.