Nico finds partner for General Insurance
Financial services group, Nico Holdings Limited, has found a strategic partner for its subsidiary, Nico General Insurance Company Limited and has accepted the offer, the group said this week.
The Malawi Stock Exchange (MSE)-listed group has since 2010 been involved in negotiations with a strategic equity partner for its wholly-owned general insurance business.
“Further to our cautionary announcement relating to a strategic investor in our general insurance companies, management wishes to inform the general public that discussions have now been concluded and an offer has been accepted,” noted a statement signed by company secretary.
But Nico Holdings say the transaction is expected to be concluded as soon as all conditions are fulfilled and that further details on the transaction, once all transaction formalities and regulatory approvals are concluded.
“The general public is informed to tread with caution when dealing with Nico Holdings Limited shares,” added the statement.
Nico Holdings Limited managing director Felix Mlusu could not be reached for a comment on Thursday as his phone went unanswered.
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wanted to find out who the partner is, how much stake is Nico Holdings willing to offload, at what price and when the deal will be concluded.
Last year, the group also concluded a deal with International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, which acquired 16.51 percent stake in NBS Bank invested $10 million.
In 2010, the group also concluded negotiations on two of its subsidiaries, Nico Life Insurance Company Limited and Nico Technologies Limited.
South Africa-based Sanlam Development Markets (SDM), a subsidiary of Sanlam Life, bought 49 percent stake in Nico Life Insurance Company Limited while Nihilent Technologies of India bought a 25.1 percent stake in Nico Technologies with an option to acquire a further 25.9 percent stake in the company.
But last year Mlusu offered an explanation on why the group is keen on partnering with strategic equity partners.
“Our businesses have matured and the need to have strategic partners is to enable us to take these businesses to another level. Through these strategic partnerships, we believe we can leverage the synergies which these smart partnerships create,” he said.
Currently, the group has subsidiaries in Mozambique trading as Nico Mozambique Vida Companhia De Seguros, in Zambia as Nico Insurance Zambia Limited, Tanzania as Niko Insurance Tanzania Limited and in Uganda as Nico Insurance Uganda Limited.
In early2010, Nico Holdings also acquired a 49 percent stake in Standard Fire Group (SFG) Holdings (Private) Limited, a general insurance firm in Zimbabwe, at $1.3 million.
Nico Holdings was the first company to list on the MSE IN 1996 and as of Wednesday, the counter with over one billion shares on issue, was trading at K15 per share.
