By Dipo Olowookere
A huge amount of money has been pumped into NEM Insurance Plc, which is expected to result into good yields for the company and its shareholders.
Recently, an investment firm, Eaton Acquisitions Limited, acquire about 4 percent stake in the company with the acquisition of 130 million shares of NEM Insurance worth N520 million at the unit price of N4.
The cross deal was negotiated between Stanbic IBTC stockbrokers and TRW Stockbrokers, representing the seller and the buyer respectively.
Business Post reports that as at the close of transactions on Monday, NEM Insurance was traded on the Nigerian Stock Exchange (NSE) at N2.85k per share.
This means that Eaton Acquisitions Limited, which focuses on identifying listed companies with high growth potential and investing, bought the NEM Insurance shares 40.4 percent higher than its current market value.
It was gathered that Eaton is planning to own 10 percent stake in NEM Insurance in the near future and that a deal could still be reached to make this a reality.
NEM insurance has been recording sterling performances lately at the stock market with its earnings attracting investors’ curiosity.
Managing Director of Eaton, while commenting on the deal, noted that his firm has had positive interactions with the management of NEM and look forward to supporting the company to continue achieving consistent stellar performance.
He said “Our company seeks to acquire a strategic stake in companies with compelling growth trends in the last couple of years and NEM neatly falls into this category hence our interest in the company.”
Mr Adeyinka added that, “We intend to build a substantial stake in the company as our board has
approved the purchase of up to 10 percent of the company’s shares.”
According to him, “We are long-term investors and believe that our confidence in the potentials and valuation of NEM is justified.”
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