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AFIG Funds acquires 29.9 per cent stake in NEM Insurance

18 Jan 2019, 01:08 pm
Financial Nigeria
AFIG Funds acquires 29.9 per cent stake in NEM Insurance

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The transaction now makes AFIG Funds the largest shareholder in NEM Insurance. 


NEM Insurance Plc has announced an investment by Advanced Finance and Investment Group (AFIG Funds), a Mauritius-based fund management company, in the insurance group. This announcement comes one week after the divestment of VFD Group, a proprietary investment company, which sold its stake in NEM Insurance following a disagreement.

In a statement released on Friday, NEM Insurance said AFIG Funds acquired 29.9 per cent of the insurer's shares through its AFIG Fund II, one of the two funds it has under management – the other being the Atlantic Coast Regional Fund.
 
The transaction, which now makes AFIG Funds the largest shareholder in NEM Insurance, is expected to accelerate the next growth phase of the insurer within the Nigerian insurance industry.

“We are delighted to welcome AFIG Funds as a significant shareholder in NEM at such an exciting time in the Company’s evolution," said Tope Smart, Group Managing Director of NEM Insurance. "We believe this partnership will accelerate the realization of our growth ambitions within Nigeria and across the continent. We are confident this will be a fruitful and mutually rewarding partnership.”

NEM Insurance is a leading insurance group in Nigeria. The non-life insurance company has operated in Nigeria for over 60 years – and more recently in Ghana – offering all classes of non-life insurance products to individuals and corporates in Nigeria.

“NEM is one of the fastest-growing, best-capitalized and most consistently profitable underwriters in Nigeria," said Papa Madiaw Ndiaye, CEO of AFIG Funds, which has offices in Dakar (Senegal), and Johannesburg (South Africa). "Our decision to invest in NEM during an election year in Nigeria, which is a time when foreign investors tend to shy away from emerging markets, is testament to our strong belief in the prospects of the Company and in the resilience of the broader economy. We are keen to begin working with management, the Board of Directors and other shareholders to execute on the many promising initiatives to further unlock the Company’s significant potential.”

NEM Insurance said CardinalStone Partners Limited and Koya Kuti Solicitors acted as its Financial and Legal Advisers, respectively. Meanwhile PWC Nigeria and Banwo & Ighodalo were Transaction Advisers to AFIG Funds.


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