International Energy Insurance to divest 81% of pension subsidiary

The management of International Energy Insurance (IEI) Plc has announced its readiness to divest 81 per cent equity shareholding in IEI-Anchor Pension Manager Limited.
IEI Plc’s in a letter sent to the Nigerian Stock Exchange (NSE) today singed by the Interim Managing Director/Chief Executive Officer, Mr. Peter Irene, stated that the company decision to divest it huge stake from IEI-Anchor Pension is as a result of section 1.10 (b) (v) of the National Insurance guideline prohibiting Insurance companies in Nigeria from investing more than 25 per cent of the proceeds of public offers and private placements of shares in non-insurance related companies or ventures.
According the him, “In compliance with the guideline and the urgent need to recapitalize the company, the members of IEI Plc at its 39 annual general meeting held on 26 of November 2010 resolved that IEI Plc shall divest it’s interest in non-insurance subsidiaries including IEI-Anchor a pension Managers Limited.”
Irene stressed that, “Efforts were subsequently made by the previous board and management of IEI Plc to sell off the company’s shares in IEI Anchor Pension Limited. However, this could not be concluded owing, inter alia, to lack of approval from National Pension Commission for sake to the preferred bidder whose group also has a custodian.”
On assumption of duties and after an assessment of the state of the company, which was dire, the interim board took steps to effectively and transparently divest the company’s interest in IEI Anchor in three stages of valuation, expression of interest and the final disposal stage, Irene said.
The Interim boss noted that the valuation stage was competitively carried out and Meristem Securities Limited selected to carry out the valuation exercise after approval was obtained from NAICOM.
“While we have sought the approval of NAICOM to proceed with the disposal and have notified the Securities and Exchange Commission to enable us receive approval for the disposal of IEI Plc’s 81 per cent equity shareholding in IEI-Anchor Pension Managers Limited”, Irene stated.