Guaranty Trust Bank Plc has set a strategic plan to sell its 67.68 per cent equity stake in Guaranty Trust Assurance Plc, to Assur Africa Holding for a consideration of N11.910 billion.
The completion, which is subject to regulatory approvals, is expected to take place at the end of the third quarter of 2011.
Speaking on the planned sale of the bank’s stake, the Managing Director/Chief Executive of GTBank, Segun Agbaje, said “this is a critical milestone in the implementation of our compliance plan with the new licencing regime of the Central Bank of Nigeria, on the back of shareholders’ approval obtained at the bank’s EGM held in October 2010.”
On the selection of AAH as GTBank’s preferred bidder, Agbaje explained: “Over the last seven years, GTBank has impacted on GTAssur our unique and enduring culture based on ethical and professional conduct as well as a high level of corporate governance, a legacy which has helped project the company from a marginal position (97th in market share) as at 2003 to a leadership position (5th) by 2010.
In this regard, we are proud of our contribution to the development and deepening of the Nigerian insurance industry.
“With the pedigree of the new buyer, the bank is confident that AAH will continue to promote a culture of corporate governance in GTAssur that is consistent and compatible with best practice.
In addition, AAH’s robust post-acquisition plan for GTAssur as well as its support of the GTAssur management team and its strategy to profitably grow the business beyond the bank’s divestment contributed to its selection as the preferred bidder for GTBank’s 67.68 per cent shareholding interest in GTAssur.”
Agbaje further stated that the sale of the company would realise significant value for its stakeholders, adding that the disposal of the bank’s subsidiaries was a demonstration that the management has plan to concentrate in core banking business.
“This sale realises significant value for our shareholders.
Together with the ongoing disposals of our other non-banking subsidiaries, it demonstrates clear delivery of our strategic focus of concentrating the Group’s financial and management resources on our core business of commercial banking, with a view to enhancing our market positioning in the segments where we have strength and scale,” he added.
AAH is a special purpose vehicle incorporated in Mauritius for the purpose of the GTAssur acquisition.
The shareholding structure of AAH made up of six members comprising three private equity funds with substantial investments across Africa – African Development
Partners I, advised by Development Partners International (DPI), based in the United Kingdom, AfricInvest II LLC and AfricInvest Financial Sector Limited, both advised by AfricInvest Capital Partners (ACP) based in Tunisia – and international developmental finance institutions – DEG (Germany), Proparco (France) and FMO (Netherlands).
The acquisition is also being made in conjunction with a number of Nigerian investors.
GTAssur formerly Heritage Assurance Limited was acquired by GTBank in 2002 for an equity value of N80.2 million. (Value as at December 31, 2010: N8.082 billion).
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