By Dipo Olowookere
An application filed by Law Union and Rock Insurance Plc to exit the nation’s stock exchange has been approved by the regulatory agency.
Last week, Business Post reported that the insurance company was planning to delist its shares on the Nigerian Stock Exchange (NSE) following the acceptance of the deal offered by new owners of the firm to shareholders.
Over the weekend, Business Post confirmed that the application filed by the organisation to the NSE through its stockbroker, CardinalStone Securities Limited, has been approved.
According to the regulatory document sighted by this newspaper over the weekend, the request was granted on Monday, September 14, 2020.
Law Union requested to voluntarily exit the stock exchange as the company intends to operate as a private entity under the new owners, Verod Capital.
Verod Capital is buying all the entire 4,296,330,500 ordinary shares of 50 kobo each of the company through Kanuri LUR Limited.
The organisation is paying N1.23 for each of the total shares of the underwriting company, amounting to N5.285 billion.
The decision to accept the N5.3 billion from Verod Capital was reached by the shareholders at a court-ordered meeting held at the Muson Centre in Lagos.
The company was sold to Verod Capital because of the new requirements of the National Insurance Commission (NAICOM) concerning the capital base of operators and to give shareholders value for their investment.
This was confirmed by the Chairman of Law Union, Mr Remi Babalola, who specifically said the deal “will serve the best interests of both the company and its shareholders.”
He said when the new owners came with their proposal, several “negotiations” were held and after getting inputs from “its advisers, the board resolved to recommend the proposal to the shareholders for their kind consideration a meeting to be convened by an order of the Federal High Court.”
Business Post gathered that Law Union and Rock Insurance, which has its headquarters in Lagos and was incorporated on June 17, 1969, was listed on the NSE on July 9, 1990, according to data on the exchange.
Adedapo Adesanya