Economy
Continental Reinsurance Holds Fresh Court-Ordered Meeting October 29
By Dipo Olowookere
The board of Continental Reinsurance Plc has received an approval to hold another court-ordered meeting on Tuesday, October 29, 2019 at Victoria Plaza Hotel, Victoria Island, Lagos.
The meeting is to enable shareholders of the company make a decision concerning the proposed acquisition of minority shareholders’ stake in the firm by Continental Reinsurance African Investments Limited at the rate of N2.50 per share.
A disclosure from the company on Friday said approval for the meeting was obtained on Thursday from a Federal High Court sitting in Lagos.
At the meeting, shareholders would be required to approve that “the amended scheme of arrangement dated September 26,2019, which revises the terms of the scheme of arrangement dated November 23, 2018 be and is hereby approved (as amended) and that the directors be and are hereby authorised to consent to any modification of the amended scheme of arrangement that the Federal High Court shall deem fit to impose and approve.
“For the purpose of giving effect to the amended scheme subject to such modification, additions and conditions agreed between the company and holders of its ordinary shares and/or approved or imposed by the court.
“i the scheme shares (as defined in the amended scheme document) be exchanged for CRe African Investments Ltd shares as indicated in the amended scheme document.
“ii Holders of the scheme shares who do not wish to exchange their shares be paid the cash consideration (as defined in the amended scheme document) by CRe African Investments Ltd.
“iii forthwith and contingent upon the action referred to in clause 2(i) above taking effect, the directors of CRe Nigeria be authorised to appoint Pace Registrar Limited as the nominee.
“iv Pace Registrar Limited shall aggregate and represent the beneficial interest in CRe African Investments Ltd of the holders of scheme shares who opt for the share consideration through the nominee arrangement or who are unable to satisfy and complete the customer/client due diligence requirements of the Mauritius Financial Services Commission within three months of the effective date.
“v Pace Registrars Limited shall be the shareholder of record in CRe African Investments Ltd in relation to the holders of scheme shares who are unable to satisfy the KYC requirements of the jurisdiction of CRe Investment, the Republic of Mauritius, within three months of effective date and opt to receive the share consideration.
“That as consideration for the exchange of the scheme shares, each holders of the scheme shares shall receive either one CRe African Investments Ltd shares for every 144 CRe Nigeria shares held as at the effective date and allotted directly or indirectly, through the nominee arrangement or N2.50 for each CRe Nigeria share held.
“That the board of directors of CRe Nigeria be and is hereby authorised to take all necessary steps as the board deems fit and to consent to any modification of the amended scheme of arrangement that the court shall deem fit to impose or approve.”
Business Post recalls that in December 2018, the firm held a similar meeting in Lagos to approve this same transaction, but the Securities and Exchange Commission (SEC) cancelled it after finding fault in the conduct of the meeting and ordered another one.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
