As part of the plan to stabilise the company, IEI PLC is finalising plans to finally get out of pension business by divesting from IEI Anchor pensions.
In a statement by the company, the move is to recapitalise its insurance business and divest from a non-core insurance service to further stabilise IEI PLC.
IEI will offloading 81% of its shareholding in the pension operations. Based on regulatory requirements, NAICOM prohibits insurance firms from investing more than 25% of the proceeds of public offers and private placement of shares in non-insurance companies.
To begin the process of selling its stake, IEI appointed Meristem Securities to valued IEI Anchor Pension Managers. However, the company did not state the value of the shareholding or value of IEI Pensions after the valuation.
Moreover, over 17 companies applied to buy IEI Anchor pensions. To complete the acquisition, IEI has confirmed that Kauthar Resources Nigeria Limited will be providing advisory services in the deal.
Once NAICOM and SEC gives the approval, IEI PLC will be disposing 81% of its shareholding from IEI Anchor Pensions.
IEI PLC will be using proceeds of the sale to shore up its capital, a move the company needs badly. Source: Page One