21 Jul 2011 17:25
Guaranty Trust Bank plc
Lagos, Nigeria: Guaranty Trust Bank plc to sell stake in Guaranty Trust Assurance plc for N11.910 billion
Guaranty Trust Bank plc ("GTBank") announces that it has agreed to sell its 67.68% equity stake in Guaranty Trust Assurance plc ("GTAssur"), one of Nigeria's leading insurance companies, to Assur Africa Holding ("AAH") for a consideration of N11.910 billion. Completion, which is subject to regulatory approvals, is expected at the end of the third quarter of 2011.
AAH is a special purpose vehicle incorporated in Mauritius for the purpose of the GTAssur acquisition. The shareholding structure of AAH is made up of 6 members comprising 3 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 3 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.
Segun Agbaje, the Managing Director/Chief Executive of GTBank, 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 7 years, GTBank has imparted 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% shareholding interest in GTAssur."
Agbaje further commented:
"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."
21 July 2011
Enquiries:
GTBank | +234-1-2714591 |
Lola Odedina, Head, Communications & External Affairs | |
Pascal Or | |
College Hill | Tel: +44 (0) 20 7457 20 20 |
Tony Friend | |
Antonia Coad |
Notes to the editors:
About GTAssur
§ GTAssur (then "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).
§ The company's principal activity continues to be the provision of risk underwriting and related financial services to over 60,000 customers. Such services include provision of life and non-life insurance services for both corporate and individual customers.
§ The company has 1 wholly owned operating subsidiary - Assur Asset Management Limited which is engaged in investment management. It also has 3 other subsidiaries - Barista Property Development Company Limited, Glen Maye Properties Limited and Assur Property Development Limited, which are all special purpose companies holding real estate assets.
§ GTAssur has 165 staff and is headquartered in Lagos, Nigeria. The company has grown its Gross Premium Income at a Compounded Annual Growth Rate (CAGR) of 77% between 2004 and 2010.
§ GTAssur has Aa- (2009) risk rating from Agusto & Co and A+ (2010) international rating from Global Credit Rating Agency.
§ In the year ended 31 December 2010, GTAssur results were:
Gross premium of N7.5 billion
Profit after tax of N643.6 million
Total Assets of N19.5 billion.
About GTBank
GTBank is one of Nigeria's leading banks with over N1trillion in assets offering a wide range of financial services and products through its 186 local branches and 506 ATMs in Nigeria as well as the internet (www.gtbank.com). The Bank is a well established franchise with strong asset quality and consistent excellent financial performance.
The Bank has five banking subsidiaries established outside of Nigeria - Guaranty Trust Bank (Gambia) Limited, Guaranty Trust Bank (Sierra Leone) Limited, Guaranty Trust Bank (Ghana) Limited, Guaranty Trust Bank (Liberia) Limited and Guaranty Trust Bank (United Kingdom) Limited. The Bank also has a wholly owned special purpose subsidiary - GTB Finance B.V. incorporated in The Netherlands and holds majority interest in a mortgage banking subsidiary - GTHomes Limited.
In addition to GTAssur, the Bank is also concluding the divestment of its shareholding interests in two other non-banking subsidiaries in compliance with the CBN directive. These are GTB Registrars Limited - a securities registration company and GTB Asset Management Limited - which provides asset management and other investment services.