ConRe to Seek Fresh Approval for Sale of Minority Shares

By Modupe Gbadeyanka

The board of Continental Reinsurance (ConRe) Plc has been directed to convey another court-ordered meeting for consideration of the proposed acquisition of minority shares of the firm by its majority core investor.

This directive was given by the Securities and Exchange Commission (SEC), which nullified the earlier meeting held by the company for the same purpose.

On December 20, 2018, the company held a court-ordered meeting, where the core investor, CRe Investments, was reportedly given the go-ahead to acquire shares of the minorities. CRe Investments wants to make Continental Reinsurance into its wholly-owned subsidiary.

However, some kicked against this, citing irregularities, which prompted the cancellation of the December 20, 2018 court-ordered meeting by the apex capital market regulator in Nigeria.

Information about the new directive has not given by the company, but the Nigerian Stock Exchange (NSE) last Thursday lifted the suspension earlier placed on the firm as a result of the latest order by SEC.

The NSE had stopped trading in the shares of Continental Reinsurance in preparation of its listing on the platform, but after the cancellation of the December 20, 2018 court-ordered meeting, this embargo has been removed.

“We refer to our Market  Bulletin dated December 31, 2018, with Reference Number: NSE/RD/LRD/MB7/18/12/31 wherein we notified dealing members of the suspension of Continental Reinsurance Plc as requested by the issuer through its Stockbroker, Chapel Hill Denham Securities Limited, for the purpose of determining the shareholders that will qualified to receive the scheme consideration following the resolutions passed by the shareholders of CRe at the Court Ordered Meeting held on December 20, 2018 in favour of the proposal by CRe African Investments Limited, a major shareholder of the CRe, to acquire all the outstanding and issued shares of CRe for cash or shares.

“The Securities and Exchange Commission has directed that the company reconvene another Court Ordered Meeting to consider the Scheme of Arrangement thereby invalidating the Court Ordered Meeting held on December 20, 2019.

“Hence, the condition upon which the suspension was earlier placed ceased to subsist.

“Consequently, the suspension on the trading of the shares of Continental Reinsurance Plc was on Thursday, July 18, 2019, lifted to allow shareholders trade on their shares pending the reconvening of the meeting and announcement of a new effective date by the company,” the statement issued by the NSE said.