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Securities and Exchange Commission

The Securities and Exchange Commission (SEC) has disclosed that three mergers and 21 acquisitions took place in Nigeria in 2014. The value of mergers and acquisitions (A & M) is put at N500 billion, according to one analyst’s estimate.

The A & M within the period under review the Nigerian Breweries and Consolidated Breweries and the acquisition of Mainstreet Bank Limited by Skye Bank Plc.  The acquisition of ConocoPhillips Nigeria’s business by Oando Energy Resources, a subsidiary of Oando Plc, was also the biggest transaction at $1.55 billion.

The next in terms monetary value is the  acquisition of Mainstreet Bank Limited from Asset Management Corporation of Nigeria (AMCON) by Skye Bank Plc at N120 billion.

The report attributed the A&M to the banks as almost half of the transactions were either directly or indirectly related to the change in banking regulatory framework. The Scope of Banking Activities and Ancillary Matters No 3, 2010 mandated banks to concentrate on core banking functions and either sell all non-core banking businesses or form a holding company to take care of such non-core banking businesses including activities such as insurance, asset management and capital market operations. Most banks opted to divest from non-core financial services.

Veritas Registrars Limited acquired 658.3 million ordinary shares, about 45.4 per cent equity stake, in Zenith General Insurance Limited from Zenith Bank Plc. Stacap Limited acquired 100 per cent equity stake in Union Capital Markets Limited, a subsidiary of Union Bank of Nigeria Plc. Also, Greenoaks Global Holdings acquired 6.97 billion ordinary shares or 92.75 per cent equity stake in Union Assurance Company Plc from Union Bank of Nigeria Plc and its subsidiaries, including Union Homes, UBN Properties, Union Trustees and William Street Trustees.

Quad Capital Limited acquired FinBank Securities and Asset Management Limited, Oriental Capital Asset Management Limited acquired 100 per cent equity stake in FINBANK Insurance Brokers Limited, Capital Alliance Private Equity III Limited acquired 3.17 billion ordinary shares or 96.11 per cent equity stake in FIN Insurance while Capital Limited acquired 2.50 billion ordinary shares in FinBank Capital Limited.

Other transactions related to the banks’ divestments included Kaizen Partners Nigeria’s acquisition of the entire issued shares of Diamond Capital and Financial Markets Limited and Diamond Securities Limited, acquisition of 50 million or 100 per cent equity stake of Citadel Registrars by Union Registrars Limited and acquisition of 54 per cent equity interest in Kakawa Discount by FBN Capital Limited and simultaneous redistribution of 20 per cent interest to FBN Holdings Limited.

Other acquisitions during the year included acquisition of 334.62 million ordinary shares or 94.7 per cent equity stake in Independent Securities Limited by Butterpot Capital Limited, the acquisition of 25 million ordinary shares of N10 and 29 million preference shares of N10 in SIM Capital Alliance Limited by ACA Holdings Limited from Sanlam Investments Holdings Limited, acquisition of 100 per cent equity stake by HBCL Investment Services Limited in Enterprise Bank Limited from Restructuring Company Limited and Eligible Securities Limited, and acquisition of 60 per cent equity stake in Penman Pension Limited by Mansard Insurance Plc.

By Dike Onwuamaeze

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