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Corporate deals

FCMB Pensions is planning to acquire AIICO Pension Managers Ltd

Recently, AIICO Insurance has been raising capital through various means. The sell-off could be one of them.

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FCMB contact centre

FCMB Pensions Ltd, a subsidiary of FCMB Group Plc, has commenced acquisition talks with the shareholders of AIICO Pension Managers Ltd.

The company wants to acquire 70% stakes in AIICO Pension Managers Ltd which is currently held by AIICO Insurance Plc, the parent company. An additional 26% stake in AIICO Pension (which is held by other shareholders) would also be acquired by FCMB Pensions Ltd, thereby bringing the proposed acquisition to 96% stake.

Separate statements made available to the Nigerian Stock Exchange by both FCMB Group Plc and AIICO Insurance Plc confirmed this development. But neither statement gave any reason for the proposed sale/acquisition.

FCMB Group did, however, explain that the proposed transaction is still subject to regulatory approvals, particularly approvals from the Federal Competition and Consumer Protection Commission as well as the National Pension Commission.

“FCMB Group Plc (FCMB Group) hereby notifies the Nigerian Stock Exchange (“NSE”) and the investing public that its pension management subsidiary, FCMB Pensions Limited (“FCMB Pensions”) has entered into discussions with shareholders of AIICO Pension Managers Limited (“AIICO Pensions”), to acquire the 70% stake held by AIICO Insurance Plc and 26% held by some other shareholders in AIICO Pensions. The proposed acquisition will make AIICO Pensions an indirect subsidiary of FCMB Group Plc,” FCMB Group said in its statement to the NSE.

READ MORE: DMO appoints new Government Stockbroker 

Meanwhile, part of the statement by AIICO Insurance Plc said:

“AIICO Insurance Plc (AIICO) hereby notifies the Nigerian Stock Exchange (“NSE”) that AIICO has entered into discussions with FCMB Pensions Limited (“FCMB Pensions”), for the sale of 70% stake in its Pension Management subsidiary, AIICO Pensions Managers Limited (“AIICO Pensions”) to FCMB Pensions Limited.

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“The proposed sale is AIICO’s stake of 70% and other shareholders stakes of 26% thus bringing the cumulative sale of 96% stake to be purchased by FCMB Pensions. At the conclusion of the proposed sale, AIICO Pensions shall cease to be a subsidiary of AIICO Insurance Plc.”

READ ALSO: FCMB holds virtual AGM as shareholders commend performance, prove Dividend

Recall that AIICO Insurance Plc has recently been raising capital through various means, mainly in a bid to meet the new recapitalisation requirement that was set by the National Insurance Commission, NAICOM. Two weeks ago, the company announced that it had sought the approval of the Nigerian Stock Exchange to list some 4.3 billion ordinary shares of N0.50 each. Perhaps, selling its subsidiary is part of the AIICO’s capital raise options.

In Q1 2020, AIICO Insurance grew its gross premium by 22.5% to N17.6 billion from N14.3 billion in Q1 2020. Profit after tax also grew by 82.8% to N1.9 billion during the quarter under review.

AIICO Insurance stock opened today’s trading on the Nigerian Stock Exchange at N0.97. Year to date, the share price has gained about 46%, up from N0.60 recorded in January this year.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Corporate deals

DEAL: Verizon sells Yahoo, AOL for $5 billion to private equity firm

The $5 billion sales by Verizon is about half the price it bought the 2 firms a few years back.

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American wireless network operator, Verizon, on Monday, announced the sales of faded web service providers Yahoo and AOL to a private equity firm for $5 billion, ending the media ambitions of the telecoms giant.

The transaction with Apollo Global Management has the entire Verizon Media unit and the advertising tech operations of the two brands as part of the deal.

According to a statement issued by Verizon, it will retain a 10% stake in the company which will continue to be led by its Chief Executive, Guru Gowarappan.

The sale will see online media brands under the former Yahoo and AOL umbrellas like TechCrunch, Yahoo Finance and Engadget go to Apollo. Verizon bought AOL for $4.4 billion in 2015 and it bought Yahoo for $4.5 billion in 2017.

There had been increasing evidence recently that Verizon wanted to sell off its media properties and instead focus on its wireless networks and other internet provider businesses.

READ: Google’s advertising revenue plunges

Private equity partner at Apollo, Reed Rayman, said, “We are thrilled to help unlock the tremendous potential of Yahoo and its unparalleled collection of brands. We have enormous respect and admiration for the great work and progress that the entire organization has made over the last several years, and we look forward to working with Guru, his talented team, and our partners at Verizon to accelerate Yahoo’s growth in its next chapter.”

Apollo’s David Sambur also said, “We are big believers in the growth prospects of Yahoo and the macro tailwinds driving growth in digital media, advertising technology and consumer internet platforms.”

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He pointed out that their goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting.

What you should know

  • It can be recalled that Verizon, in 2017, purchased Yahoo for about $4.5 billion, ending the run for one of the storied brands of the early internet. It later merged Yahoo into its division with AOL, another star of the early internet era, which Verizon acquired in 2015.
  • Both AOL and Yahoo lost traction and lofty market valuations as internet users shifted to newer platforms such as Google and Facebook.
  • The purchase was meant to give Verizon a pathway into mobile, with the goal of using AOL’s advertising technology to sell ads against digital content. Verizon doubled down on that strategy in 2017 with its acquisition of Yahoo, which it combined with AOL under the umbrella Oath.
  • The $5 billion sales by Verizon is about half the price it bought the 2 firms a few years back.

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Corporate deals

DEAL: AJUA, leading customer experience platform acquires Kenyan-based AI firm, WayaWaya

WayaWaya founder and lead Janja product builder, Teddy Ogallo, joins Ajua as VP of Product APIs and Integrations.

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For an undisclosed sum, Ajua, the integrated Customer Experience Management solution for businesses in Africa, has acquired WayaWaya, the Kenya-based Artificial Intelligence [AI] and Machine Learning [ML] company known for its innovative Janja platform that enables borderless banking and payments across apps and social media platforms.

WayaWaya founder and lead Janja product builder, Teddy Ogallo, joins Ajua as VP of Product APIs and Integrations.

Launched in 2012, Ajua was built to solve the customer experience gap for businesses on the continent to drive business growth. Ajua combines technology with customer experience and has built a number of innovative products that deliver real-time customer feedback at the point of service, for small and large businesses across Africa, with the goal to digitalize and power growth for over 45 million SMEs. Current Ajua infrastructure partners and clients include GoodLife Pharmacy, Standard Chartered, FBNQuest, Safaricom, Total, Coca-Cola and Java House.

The acquisition of WayaWaya allows Ajua to integrate Janja to automate much of the customer experience journey by integrating janja.me product into their product stack, closing the customer experience loop as the smart AI and ML built by WayaWaya gives SMEs the ability to automate responses and give the customer what they want, when they want it.

WayaWaya currently helps both individuals and businesses with intelligent messaging, across a number of social platforms, including Whatsapp, Facebook messenger, Telegram, and others. It allows its users to automate customer support and make cross-border payments. As well as its vast reach with social platforms, WayaWaya is also integrated with global and African financial leaders including Mpesa, Airtel Money, Bankserv, First Data, Interswitch, Stripe, Flutterwave, Visa and MasterCard.

This comes just one month after Ajua announced its partnership with Nigeria’s MTN for MTN EnGauge, an agile application that offers innovative customer management solutions. The platform enables businesses to access digital payments using a unique USSD code, CRM tools, customer feedback channels, debt management and tracking, business and product promotions through mobile and social media channels.

Through its new product roll-out with MTN, Ajua is generating more data for its thousands of users, much of which can now be better automated and monetized through the products and services WayaWaya has built, including cross-border digital transfers, payments services and intelligent finance bots.

The SME market in Nigeria alone is valued at $220 billion annually and projections reveal that businesses with Customer Relationship Management (CRM) have bolstered their productivity by 40 percent. Ajua, the leader in the technology-powered customer experience market for the continent, uses data and analytics to connect companies with their customers in real-time, helping businesses to better understand the nature of their customers and subsequently increase sales through smarter experiences.

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What they are saying

Kenfield Griffith, Ajua Founder and CEO said “The acquisition of WayaWaya is an important milestone for us, as we make a significant leap in ensuring the customer experience journey for businesses across the continent is seamless. Integrating WayaWaya’s technology significantly complements our product suite and gives us the ability to automate our clients’ businesses and grow their revenues, which is an extremely powerful proposition for our customers of all sizes, across Africa. From our experience in this area, we understand the CX fundamentals that drive growth for our customers and we want to bring this intelligence to SMEs across the continent.”

Teddy Ogallo, founder of WayaWaya and new VP of Product APIs and Integrations for Ajua adds, “Ajua’s focus on introducing and scaling customer service and customer experience for the continent – and essentially how they help businesses deliver excellence for their customers is something my team and I have long admired. Seeing how WayaWaya’s technology can complement Ajua’s innovative products and services, and help scale and monetize businesses, is an exciting opportunity for us, and we are happy that our teams will be collaborating to build something unique for the continent.”

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