Nico Holdings sells shares in subsidiaries
Nico Holdings Limited has resolved to sell 49 percent of shares in four of its subsidiary companies. The affected subsidiries are: Nico General Insurance Company, Niko Insurance Tanzania, Niko Insurance Uganda and Nico Insurance Zambia to Sanlam Emerging Markets (SEM).
In an extraordinary general meeting (EGM), held at Protea Ryalls Hotel in Blantyre on Thursday, Nico Holdings shareholders resolved to sell the stakes for an initial purchase price, arrears debtors purchase price and a profit deferred purchase price.
Speaking after the EGM, Nico Holdings Limited managing director Felix Mlusu noted that the sale will add more value to Nico Holdings’ general insurance business.
“SEM is part of the Sanlam Group of life insurance in South Africa and as such have a lot of expertise. We believe that we will be able to leverage on their major international clients which are in the countries that they are operating in which Nico Holdings businesses also operate. Our businesses should grow much bigger and much faster than they have done todate.
“The proceeds from the sale are going to be used to recapitalise some of our existing companies both here in Malawi and abroad. We are also looking at buying new companies or setting up new companies in other countries,” said Mlusu.
He added that they will also pay a special dividend to shareholders.
Established in June 2011 as a wholly owned subsidiary of Sanlam Life Insurance Limited, SEM is part of the Sanlam Limited group.
The core business of the general insurance subsidiaries of Nico Holdings is short term insurance which includes personal and commercial insurance covers such as motor vehicle, fire and contractors’ all risks.
