Chams increases shareholder value, transits to holding company
Nigeria’s foremost fintech and digital payment solutions, Chams Plc., has successfully raised the value of its assets and transited to Chams Holding Company Plc., after changing its Nigerian Exchange (NGX) listing.
The 38-year-old organisation started the process of renewal and recapitalisation of its Mobile Money and Switching payment licenses in 2021 to meet up with the Central Bank of Nigeria’s (CBN) requirements.
According to the Group Managing Director (GMD) of the company, Gavin Young, part of the requirements of the CBN was for Chams to change its listing to a non-operating holding company, which the company has achieved.
“This change takes immediate effect and we will now be known as Chams Holding Company Plc. Listing means that we are focussing on our existing subsidiaries and business assets to build shareholder value, whilst incubating and growing other businesses within our subsidiaries, and also creating new subsidiaries as part of the Holding Company structure,” Young said.
He noted that 2022 has been a major year for the organisation, saying, “Although the migration to a HoldCo was a major component of our Consumer-Africa-Digital (CAD) 2024 Unicorn vision, led by our founder and Chairman, Sir Demola Aladekomo and our esteemed Board of Directors in 2020, it was also mandated by the CBN, as Chams Plc is the majority stakeholder in two major CBN payment licences via our subsidiaries ChamsSwitch Limited and ChamsMobile Limited.”
He noted that the Group has focussed primarily on growing its consumer and business digital payment solutions while expanding other potential and current investments in the digital space, to ensure sustainable value for its stakeholders.
“All our businesses have returned improved performances, promising growth and good value, and we are working hard to ensure this continues,” he said, hinting that the company had created a separate company for its start-up Education Finance digital solution (Studiez) and moved one other start-up digital business to an existing subsidiary where the businesses were complementary.
Two fintech payment subsidiaries in the Chams Group, which recently recapitalised- ChamsSwitch and ChamsMobile- are said to have increased value significantly for shareholders and it is expected that both companies would be major contributors to the prosperity of the Chams Group as they continue to grow rapidly in the Fintech payments space.
Speaking on how the company has built a strong digital payments foundation and increased the value of its digital assets significantly, Young said, “Our financial results show that we have significantly grown our business assets, as we implemented our Unicorn Vision. For example, in 2021, we resurrected ChamsMobile Ltd, recapitalised the company and provided income-generating assets to them.
“They acquired systems and other operating infrastructure and commenced implementation of their Kegow Mobile Money and Financial Agent Services towards being a leading Mobile Money Fintech payments company, across Africa. Likewise, ChamsSwitch Ltd also recapitalised during 2021 and substantially increased its transactional payment volumes. This resulted in a significant increase in the value of the company.”
According to him, ChamsAccess Ltd has continued its good performance and delivered consistent results for the Group, saying that the company also introduced exciting new digital solutions, including PensionCentral, which are currently showing rapid growth.
“Our other subsidiary; Card Centre Nig. Ltd; expanded and diversified their business and secured a major international partnership which culminated in the installation of new SIM card infrastructure and acquiring substantial SIM card business. This is already contributing to their improved performance and a significant increase in value for stakeholders,” Gavin Young stated.
The Managing Director, ChamsMobile Ltd, Mayowa Olaniyan, disclosed that the fintech subsidiary recently recapitalised, which has positioned the company to roll out its anticipated fintech products.
“In our concerted efforts to rapidly grow our financial inclusion services through Mobile wallets and agent financial services, ChamsMobile recapitalised to N2billion, acquired and implemented systems and operational infrastructure, and commenced the roll-out of our KEGOW Mobile Money wallets and Financial Agent services strategy towards being a leading Mobile money Fintech payments company, providing consumer and SME mobile digital payment services across Africa,” Olaniyan stated.
On his part, the Managing Director of ChamsSwitch Ltd, Emmanuel Ojo said, “Our primary focus is financial payments processing, B2B and B2C financial transactions and added-value financial services. Our growth in financial processing and payments switching businesses during 2021 has been very encouraging and we have seen a significant increase in Chams’ share value in the company. We have certified as an issuer processor for Union Pay International (UPI) and will soon commence UPI card processing for a major bank in Nigeria.”