Posted by From Onwuka Nzeshi in Abuja on
Seven firms including Industrial and General Insurance (IGI) have qualified for due diligence exercise preparatory to the privatisation of NICON Insurance Plc.
Seven firms including Industrial and General Insurance (IGI) have qualified for due diligence exercise preparatory to the privatisation of NICON Insurance Plc.
The firms are bidding for Federal Government's 51 per cent equity share in the insurance firm. Aside from IGI, those on the queue include CCNL Investors; First Investment Consult Limited; Garston-Jones Investment Limited, Trans-africa Insurance Consortium; Assu-rance Acquisition Consortium and Zenith General Insurance Company Limited.
Bureau of Public Enterprises (BPE) began the privatisation process on NICON in 2001 with the pre-qualification of five companies namely CCNL Investors; First Investment Consult Limited; Garston-Jones Investment Limited (Management Buy-Out); Industrial and General Insurance Company Limited and Transafrica Insurance Consortium.
The exercise was however botched in 2002, following a court injunction bordering on the dissipation, disposal and further sale of the assets of NICON Insurance Plc.
With the withdrawal of the suit, BPE resumed the privatisation process last year and re-advertised for prospective core investors which culminated in the emergence of two new firms - Assurance Acquisition Consortium and Zenith General Insurance Compan Limited - in addition to the earlier five.
THISDAY checks revealed that apart from IGI, all the other firms jostling for the NICON shares are backed by either insurance conglomerates or bank groups, operating in the country.
CCNL Investors, for instance is a special purpose vehicle floated by Cornerstone Insurance with 14 years experience and Leadway Assurance Consortium, which on its own parades 34 years cognate experience.
Similarly, First Investment Consult Limited (FICL) is a special purpose vehicle put together by Standard Trust Bank/UBA; Heirs Alliance; Central Insurance Company; Royal Exchange Assurance (REAN); Lion of Africa Insurance; Standard Chartered Insurance Brokers (SCIB) and BGL. This group parades firms some of which have over thirty years experience in the industry.
Garston-Jones Investments Limited is a Management Buy-Out vehicle with provisional shareholding by employees of NICON; NICON staff pension scheme and African Reinsurance Corporation. On the other hand Guardian Express Bank Plc; First Call Limited and Guardian Express Assurance Staff Provident back Transafrica Insurance Consortium. Assurance Acquisition Consortium (AAC) is also a special outfit championed by Afribank Nigeria Plc; Niger Insurance; Nigeria Social Insurance Trust Fund (NSITF); Kapital Insurance; Apt Securities and N-Glory Development, while Zenith General Insurance Company Limited (ZGICL) consists of Zenith Bank Plc and Zenith Securities
Limited. The consortium formerly known as Piccadilly Insurance has been on the scene in the last twenty-three years.