FBN Life Assurance Acquires Oasis Insurance PlcBusiness, Insurance Monday, February 17th, 2014
Kayode Adelowokan, Lagos
FBN Holdings Plc has announced that its subsidiary, FBN Life Assurance Limited has acquired 4,630,595,326 ordinary shares of 50kobo each representing 71.2% of the total issued ordinary share capital of Oasis Insurance Plc.
Oasis Insurance Plc is a general insurance company in Nigeria, licensed to carry on non-life insurance business in Nigeria, spanning fire, general accident, motor, marine, aviation, oil & gas, bond and engineering all-risk policies.
FBN Holdings Plc in a press statement made available to African Examiner revealed that the acquisition was effected through the execution of a share sale and purchase agreement with the majority shareholders of Oasis following receipt of approvals of the Board of Directors of FBN Life, FBN Holdings Plc and the selling shareholders as well as the requisite regulatory approvals from the National Insurance Commission (NAICOM), Securities & Exchange Commission (SEC) and The Nigerian Stock Exchange (NSE).
The statement said the Company’s key strategic rationale for the acquisition of Oasis Insurance is to diversify into general insurance service offerings.
“FBN Life plans to complement its existing life assurance business with a range of general insurance products as part of the strategic plan to improve insurance penetration in Nigeria.”
The Chief Executive officer, FBN Holdings, Mr. Bello Maccido, expressed his delight with the new addition to the group, adding that the formal acquisition of Oasis Insurance plc provides the group with an entry point into the general insurance sector of the Nigerian Insurance Industry.
“With this acquisition, FBN Holdings will continue to leverage synergies across the group to grow its businesses profitably and reinforce its leadership position whilst driving the business forward. The new investment will also leverage off the extensive branch network of First Bank and FBN Life’s existing distribution infrastructure.”
Having received regulatory approvals from both the Securities and Exchange Commission and NAICOM, Managing Director of FBN Life, Mr. Valentine Ojumah, said FBN Life Assurance Limited has set the stage for its emergence as a dominant player in the insurance industry.
According to Ojumah, “The proposed acquisition will not violate any antitrust laws in the insurance sector in Nigeria and it is expected that the business combination will enhance both efficiency and profitability, as FBN Life will be expanding its portfolio of services into the general insurance business while leveraging on First Bank’s national footprint.
“Upon completion of the Transaction, we shall be absorbing the share capital of Oasis into that of our listed entity, thereby minimising the potential impact on market capitalisation on the Nigerian Stock Exchange.
“With the support of management and the Board of Directors of both institutions, we intend to complete the transaction and integration before the end of the 2nd quarter in 2014.”
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