Fakoyejo OlalekanAccess Corporation has received regulatory approval for the acquisition of First Guarantee Pension Limited (FGPL)almost four months after it announced an agreement to acquire the pension firm.
The financial institution had bought First Guarantee Pension Limited after selling Access Pension Fund Custodian Limited to its market rival, First Bank of Nigeria (FBN) Holdings, as Access Corporation restructure its subsidiaries.
The regulatory approval comes amid disapproval of the deal by some shareholders of First Guarantee Pension Limited. Three months ago, Prime Business Africa had reported that the deal was described as illegal, as it goes against shareholders’ Preemptive Rights as enshrined in the Company and Allied Matters Act (CAMA) 2020. Some shareholders have gone to court to stop the deal.
Also recall that Access Bank had restructured its operation by becoming a holding company, Access Corporation, in a bid to expand beyond core banking operation. This enables Access Corporation to enter the pension market and other industries it sees fit.
Access Corporation didn’t reveal which regulator gave the approval, but the deal falls under the regulatory oversight of the Central Bank of Nigeria (CBN) and National Pension Commission (PenCom).
“Following this development, FGPL is now a subsidiary of the Corporation and will provide a strong springboard for the Corporation’s execution of its ecosystem strategy for the pension funds administration industry.” a statement filed with the Nigerian Exchange Limited (NGX) discloses.
Speaking on the approval, Access Corporation’s Group Chief Executive Officer, Herbert Wigwe, said, “This transaction is in line with our vision to create a globally connected community and ecosystem; inspired by Africa for the world.
“We will deploy our renowned culture of strong risk management, innovative technology and best practice corporate governance to deliver high standards of management and returns on pension assets to the benefit of our stakeholders.”
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