GTASSURANCE SALE TO AAH HITS BRICKWALL
That Guaranty Trust Bank, GTBank, Plc has concluded arrangements to sell its insurance subsidiary, Guaranty Trust Assurance Plc to a Mauritius firm, Assur Africa Holding, AAH, comprising three private equity funds and three international developmental finance institutions based in United Kingdom, France, Tunisia and Germany is no news but information flitting alleged that the deal might hit brick wall.
The latest from the deal according to an insider is that the Segun Agbaje’s administration did not inform AAH that only 67.68 per cent stakes in the company, valued at about N11.91 billion will be sold to AAH subject to the approval of the regulatory authorities and its shareholders while they, Gtbank directors will hold on to the remaining under the pretence that there are others Nigerian investors.
This development according to impeccable sources might make the foreign investor call it quit with the acquisitions since there was no statement during the negotiation that GTbank, either as a financial institution or thru its manager will have a stake in the acquisition.
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.
The planned sale is in response to the Central Bank of Nigeria’s directive abolishing universal banking. The abolition of universal banking, forbids banks from undertaking services or activities apart from its core banking activities. It also forbids banks from owning or having interests in subsidiaries or companies not involved in banking.