Eustacia Limited Acquires AXA Mansard Pension From AXA Mansard Insurance

AXA Mansard Pension Limited has been acquired by Eustacia Limited following the acquisition of shares from the parent company, AXA Mansard Insurance Plc. This comes seven months after shareholders approved AXA Mansard Insurance's plan to divest from AXA Mansard Pension to focus on its core business.

The acquisition occurred after a bidding round which saw Eustacia Limited selected as the preferred bidder. Eustacia Limited, a member of Verod Group, acquired 60% shares (2,067,672,000 shares) held by AXA Mansard Insurance in the Pension arm, and the 40% shares (1,378,448,000 shares) held by the minority shareholder.

According to a statement from AXA Mansard Insurance, seen by AllNews, it was stated that, "AXA Mansard Insurance Plc announces the divestment from its subsidiary, AXA Mansard Pensions Limited. After obtaining the Shareholder’s approval at the Company’s Extra-Ordinary General Meeting held on the 13th of February 2020, the Company commenced the process of divestment by appointing Messer Rand Merchant Bank as the Financial Advisers while Aluko & Oyebode acted as the Legal Advisers on the transaction.

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‘’Upon completion of a bid process, Eustacia Limited (a member of the Verod Group) was selected as the preferred bidder. The Company along with the minority Shareholder entered into a sale and purchase agreement with Eustacia Limited to divest the entire issued ordinary share capital of AXA Mansard Pensions comprising of 60% shareholding (2,067,672,000 shares) held by AXA Mansard Insurance Plc and 40% shareholding (1,378,448,000 shares) held by the minority shareholder.’’

AllNews gathered that the National Insurance Commission (NAICOM), National Pension Commission (PENCOM) and the Federal Competition & Consumer Protection Commission (FCCPC) had no objection to the divestment by AXA Mansard Insurance, however, it is still subject to PENCOM's final approval.

Speaking on the acquisition, a partner at Verod Group, Eric Idiahi, said, ‘’We strongly believe that this is the ideal time to enter the market and that AXA Mansard Pensions provides an excellent beachhead from which to establish a consolidated position and gain market share."

The Chief Executive Officer of AXA Mansard Insurance, Kunle Ahmed, said the divestment from AXA Mansard Pension will enable the insurance company focus on its life, property & casualty and health businesses across Nigeria, as the insurance market undergo recapitalization that threatens the existence of some insurance companies.