Premium Pensions Ltd has denied what they called “several rumours” and “misinformation” regarding a possible business combination with an unnamed entity.
The company however confirmed discussions are ongoing, possibly about a “takeover plan” but that “no definitive agreement” had been reached.
Premium Pension also confirmed that a business combination was being proposed suggesting it plans to either be acquired or enter a merger with another entity, possibly in the pension fund administrator business.
See excerpts of the press release
- “It has come to our attention that there are several rumours and misinformation in circulation regarding a possible business combination between Premium Pension Limited and another Pension Fund Administrator.
- We would like to assure you that the interest of our customers remains our top priority in any decision we make.
- With over N1 trillion in Assets Under Management (AUM) and a track record of consistent above industry average investment performance and growth, our fundamentals and projections remain very strong.
- Any consideration around our future growth plans will be in line with our aspirations and shall take into account the interest of our stakeholders.
- While discussions are ongoing, no definitive Agreement has been reached yet and due processes are being followed.
- The proposed combination, if it materlalizes, Is aimed at bolstering our market position and deepening our pension services so that we can serve you better. “
Whilst the press release is conceived as a denial it also inadvertently confirms that a deal is being considered and could be consummated soon.
Pension Fund Deals: There has been a wave of mergers and acquisitions in the Pension Industry as competition for contributors ratches up.
- Since most commercial banks moved towards the HoldCo structure they have seen PFAs as a prime target for their suite of financial services companies.
- Premium Pension is considered to be among the top 5 PFA’s and is thought to also require a merger with a top bank to compete with the likes of StanbicIBTC Pension and Access Pensions. Both are considered some of the largest in the sector
Access Pensions is a tiny PFA that isnt even upto 700billion.
Dude, where have you been sleeping? LMAO
Access Pension is currently the fourth largest PFA in Nigeria, after having acquired Sigma Pensions (from Actis Golf) and First Guarantee Pensions (from First Bank).
First bank never own any PFA. They are just custodian. Also you cannot be a custodian and own a PFA that’s why Access custodian sold off their assets to first custodian and moved into the PFA business.