GT Assur Acquired By Offshore Consortium, GTBank Books Gain on Sale
GTBank recently announced its divestment from GT Assur, formerly the insurance subsidiary of the bank, and released the transaction dynamics to the public.
The bank has completed the offloading of its 6.8 Billion shares in the insurance entity. The shares were sold at a premium of 40% to a consortium, Assur Africa Holding.
According to a source close to the transaction Assur Africa Holdings consists of 1) African Development Partners I, advised by Development Partners International (“DPI”) based in the United Kingdom, 2) AfricInvest II LLC and 3) AfricInvest Financial Sector Limited, both advised by AfricInvest Capital Partners (“ACP”) based in Tunisia, 4) DEG (Germany), 5) Proparco (France) and 6) FMO (Netherlands).
Due to the premium at which the shares were sold, GTBank stands to make a N 3.9 Billion gain on the deal representing an impressive 47.36% return on investment.
GTBank was compelled to sell of GT Assurance due to CBN regulation that revered universal banking and ordered all banks with non-bank subsidiaries to either evolve into a holding company or dispose of their non bank assets.