Nico Holdings 25.1% stake to change hands
Nico Holdings Limited is engaged in discussions that may potentially result in the change of 25.1 percent shareholding of the Malawi Stock Exchange (MSE)-listed financial services group, according to a cautionary statement.
In a statement, company secretary Emily Makuta said parties involved in the transaction are related, but could not provide more details of the transaction.
“Shareholders and the general public are, therefore, advised to exercise caution when dealing with Nico Holdings Limited shares until a full announcement is made on the outcome of this intended transaction,” she said.
Nico Holdings Limited, which posted a reduced after-tax profit of K7.3 billion ($16.2 million) in the year ended December 2014 from K9.1 billion ($20.2 million) the year before, has interests in banking, general and life insurance, pension business, investment and technology.
The group owns listed NBS Bank, Nico General Insurance, Nico Life Insurance, Nico Technologies and Nico Asset Managers Limited and has footprints in Zambia, Tanzania and Uganda where it is operating general insurance business.
In 2013, South Africa-based financial services group Sanlam Emerging Market (SEM) Proprietary Limited bought 49 percent stake of Nico Holdings shareholding in general insurance business in Malawi, Zambia and Uganda.
Last year, SEM also bought Nico Holdings’ 49 percent stake in Niko Insurance Tanzania Limited.
In 2012, Nico Holdings entered the Mozambican market where it opened a life insurance company named Nico Mozambique Vida Companhia de Seguros S.A.
However, in view of “insufficient assets to meet the policyholder liabilities and regulatory solvency requirement” the company was insolvent as at December 31 2014, according to QED Actuaries and Consultants (Private) Limited.
Nico Holdings Limited is 34.24 percent owned by the public (Malawi and foreign), Nico employees trust (Malawi and foreign) own 1.1 percent, International Finance Corporation (IFC) has 11.65 percent, SEM 25.1 percent and Africap LLC with 27.91 percent.
As of yesterday, the counter with one billion shares on issue and K31
billion ($68.9 million) in market capitalisation traded at K30 per share.
