By Dipo Olowookere
Shares of ARM Life Plc have been delisted from the trading platform of the NASD over-the-counter (OTC) Securities Exchange, Business Post has confirmed.
The company’s securities were removed from the unlisted securities market by the exchange on Monday, March 1, 2021, after the firm was acquired by Tangerine Life Insurance Limited.
In February 2020, both companies said they were exploring each other’s strengths to form an impressive new enterprise that will delight its customers with its quality products and commitment to their satisfaction.
Tangerine Life has a very strong presence in the corporate market segment of the underwriting industry, while ARM Life is a formidable force in the retail and annuity-based service space.
With the merger, it is expected that the new entity will take control of the underwriting industry in Nigeria and from the information gathered by this newspaper, Tangerine Life has already cemented itself as the fourth largest life insurer in Nigeria with the transaction, allowing it to offer insurance services to the youth and others.
With the deal completed and ARM Life shares delisted from NASD OTC Exchange, the new company will likely operate as a private entity.
Confirming the exit of ARM Life from its platform, the NASD disclosed that in a notice that, “Further to the appointment of Stanbic IBTC Stockbrokers Limited as the stockbrokers to the merger between Tangerine Life Insurance Limited and ARM Life Plc, we wish to inform you of the following:
“Following the full suspension placed on the shares of ARM Life Plc, the last trading date of ARM Life Plc on NASD OTC Securities Exchange was Thursday, February 11, 2021.
“Upon the completion of the merger between Tangerine and ARM life Plc, ARM Life Plc is delisted on the NASD OTC Securities Exchange on March 1, 2021, and would not be eligible to trade on its market.”
It was gathered that to make the deal go through, Tangerine Life had to acquire a 77.22 per cent equity stake in ARM Life and acquired a further 1.05 per cent equity stake through the subsequent mandatory take-over offer incompliance with the law and regulations, bringing its total shareholding in ARM Life to 78.27 per cent as at the date of the scheme document.
As consideration for the transfer, Tangerine Life will offer the other shareholders of ARM Life 70 kobo for every share held in the firm.
Shareholders also have the option to receive shares in Tangerine Life in the ratio of 8 shares in Tangerine Life for every 100 shares held in ARM Life.
Recall that the National Insurance Commission (NAICOM), which regulates the sector, stipulated an increase in minimum capital requirements for life insurance, general insurance, composite insurance and reinsurance companies with a two-step target timeline of December 31, 2020, and September 30, 2021.
Specifically, the life insurance license capital requirement was increased from N2 billion to N8 billion, while life insurers are expected to have a minimum capital of N4 billion by December 31, 2020, and N8 billion by September 30, 2021.
The recapitalisation in the Nigerian insurance industry is expected to impact the competitive landscape of the insurance industry.
Adedapo Adesanya