Norrenberger Advisory Partners Limited has acquired a 100 per cent equity interest in International Energy Insurance Company Plc, IEI has announced in a note to the Nigeria Exchange Limited.
IEI owns 81% of IEI Anchor Pensions. The acquisition of IEI Insurance, makes Norrenberger the new majority shareholder of IEI Anchor Pensions. One of the relatively small pension fund managers, with less than 100bn Assets Under Management.
Notably, Norrenberger would need to recapitalise both the Insurance company as well as the pension business. While Norrenberger and minority shareholders of IEI Anchor Pensions, including Vine Capital Partners and Senators Dr. Rufai Hanga and Professor Jonathan Silas, would have to recapitalise the business to meet the new N5billion capital requirement on or before April 2022, Norrenberger would have to bridge the negative equity of the insurance group, IEI and capitalise it to meet the new capital requirement of N10bn for General insurance providers.
While NAICOM has a deadline of 30 September 2021 for the new capital requirement. Norrenberger would have sought forbearance on the timeline to recapitalise the insurance business. The transaction was managed by NAICOM-appointed management in IEI, because the regulator has since taken over the business to protect the creditors and customers, following the inability of hitherto shareholders to recapitalise the business.
Notably, with this acquisition by Norrenberger, there is no clarity yet on the consideration that will given to erstwhile shareholders of IEI,