L-R: MD, ChamsAccess Ltd, Dumebi Obodo; MD, ChamsSwitch, Ltd, Emmanuel Ojo; Group Managing Director, Chams Holding Company Plc, Gavin Young; MD, ChamsMobile Ltd, Mayowa Olaniyan and Chief Operating Officer, Card Centre Ltd, Lekan Latona, during the official Announcement of Chams Plc as Chams Holding Company Plc, held in Lagos.
Chams Plc changes listing to a Holding Company, Increases shareholder value
Chams Plc, Nigerias foremost indigenous fintech and digital payments solutions Group is now a holding company having successfully changed its Nigerian Exchange (NGX) listing over 37 years after being founded.
According to the companys Group Managing Director (GMD), Gavin Young at a press conference held at their Victoria Island head office on Wednesday, August 17th, 2022, Chams Plc started the process in 2021 to meet requirements for the renewal and recapitalization of our Mobile Money and Switching payment licenses.
“Part of the requirements of the Central Bank of Nigeria was for Chams to change its listing to a non-operating holding company, which we have now successfully achieved. This change takes immediate effect and we will now be known as Chams Holding Company PLC”, Young said.
While expressing further on the change, he noted that 2022 is a major year for the now Chams Holding Company, adding that: 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 Central Bank of Nigeria, as Chams Plc is the majority stakeholder in two major Central Bank of Nigeria payment licences via our subsidiaries ChamsSwitch Limited and ChamsMobile Limited.
According to Young, listing as a Holding Company 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.
The Group has focussed primarily on growing its consumer and business digital payment solutions whilst also expanding other potential and current investments in the digital space, to ensure sustainable value for our stakeholders. All our businesses have returned improved performances, promising growth and good value, and we are working hard to ensure this continues, the GMD stated.
For businesses that Chams Plc was incubating and growing, the GMD hinted 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 complimentary.
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 will 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, which will continue as a major focus, Young further stated that: Our financial results show that we have significantly grown our business assets, as we implemented our Unicorn Vision. For example, during 2021, we resurrected ChamsMobile Ltd, recapitalized the company and provided income-generating assets to them. They acquired systems and other operating infrastructure and commenced implementing their Kegow Mobile Money and Financial Agent Services towards being a leading Mobile Money Fintech payments company, across Africa.
Likewise, ChamsSwitch Ltd also recapitalized during 2021 and substantially increased their transactional payment volumes. This resulted in a significant increase in the value of the company.
ChamsAccess Ltd has continued their good performance and delivered consistent results for the Group. They also introduced some exciting new digital solutions which are showing rapid growth. PensionCentral is one of those.
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 GMD further expressed satisfaction with the transformation and refocus the Group has made over the last 2 years particularly, stating that Chams has remained committed to its long-term strategic ambitions and are pleased with the progress made in driving Fintech and other digital assets, and ensuring the Group is well positioned to grow through the current 2022 2024 strategic cycle.
ChamsMobile Limited- Subsidiary
In her remark, 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.
ChamsSwitch Limited- Subsidiary
On his part, the Managing Director of ChamsSwitch Ltd, Emmanuel Ojo revealed that the switching subsidiary has made significant progress, which he attributed to a recent N2billion recapitalisation. “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, Ojo explained.
ChamsAccess Limited- Subsidiary
Giving account of ChamsAccess’ market impact, the subsidiarys Managing Director, Dumebi Obodo, stated that: ChamsAccess introduced some new innovative digital solutions in 2021, whilst continuing to grow our strong legacy business lines. For example, through our new Pension Central digital platform, we have over 300 major customers on the platform and have processed over N4billion in transaction value. Other digital solutions such as Argone and instant financial card issuance, have all experienced increased market penetration and promising growth.”
According to Obodo, ChamsAccess has been delivering good value for the Chams Group for a few years now: “we expect this to continue through 2022 as we focus on growing our innovative Digital businesses.
Card Centre Limited- Subsidiary
Drawing from the recent ban on importation of SIM card imposed by the President Muhammadu Buhari-led Federal Government, Chief Operations Officer, Card Centre Limited, Lekan Latona, expressed confidence in the opportunities that lies ahead in growing market share in the months to come.
I am very pleased that, together with close support from our Chairman, Directors and senior management across the Chams Group, we have expanded and diversified our business through international and local partnerships. We have installed significant additional SIM card production and personalisation infrastructure and have secured a major local contract. We have also introduced a new financial services card chip into the local market as part of our strategy to grow the financial card business. Im pleased to say that its attracted major orders from local banks. This will contribute to our improved performance and sustainable value for stakeholders.
In addition, the introduction of our new SIM card business line supports increased local content in the telecommunications sector, ensuring that the process of SIM card production is undertaken locally, with the added benefit of job creation and export potential. I believe that CCNL holds exceptional value for existing and potential new investors in the short to medium-term Latona emphasised.
