Economy
Law Union and Rock Insurance to Delist from NSE
By Dipo Olowookere
Shares of Law Union and Rock Insurance Plc will soon no longer be available for trading on the floor of the Nigerian Stock Exchange (NSE), Business Post has confirmed.
This is because the company will be delisted from the exchange after plans to buy out the entire share capital of the company are concluded.
Last Thursday, shareholders of the insurer agreed to sell their stake in the organisation to the new owners, Verod Capital, at a unit price of N1.23.
At the Annual General Meeting (AGM) and the Court-Ordered Meeting (COM) held at the Muson Centre in Lagos, the shareholders said they are willing to collect the N1.23 per share being offered by the new investor.
Verod Capital has proposed to purchase the entire issued share capital of the firm in a Transaction Implementation Agreement (TIA) through its investment vehicle, Kanuri LUR Limited.
Under the deal, Law Union and Rock Insurance agrees to transfer a total of 4,296,330,500 ordinary shares of 50 kobo each of the company to Kanuri LUR or any other nominee of Kanuri LUR in consideration for a cash payment of N1.23 per share to the shareholders.
In view of this, all the shares in the company will become fully held by Kanuri LUR and its designated nominee.
It was gathered by Business Post that on the payment of the amount requested by shareholders, Law Union and Rock Insurance will be delisted from the main board of the NSE, while the registration of the ordinary shares of the company with the Securities and Exchange Commission (SEC) will be withdrawn and the firm will be re-registered as a private company limited by shares.
It was learned that this action was taken because of the new requirements of the National Insurance Commission (NAICOM) concerning the capital base of operators.
The insurance sector regulator in Nigeria has asked all insurance and reinsurance companies to increase their minimum paid-up capital and at the moment, that of Law Union and Rock Insurance is at N3 billion. But with this deal, it will rise to N10 billion, enabling it to remain in business.
According to Chairman of the firm, Mr Remi Babalola, this decision was taken to give better value to investments of shareholders in the company.
“Following negotiations with Kanuri LUR and further advice 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.
“The board has further resolved to effect the proposal by way of a scheme of arrangement under Section 539 of the Companies and Allied Matters Act (CAMA) Chapter C20, laws of the federation of Nigeria 2004 as your board believes that same will serve the best interests of both the company and its shareholders,” Mr Babalola said at the COM, which took place after the AGM.
The Managing Director of Law Union and Rock Insurance, Mr Ademayowa Adeduro, said the board and management took the best decision in the interest of shareholders.
According to the proposed scheme consideration, the N1.23 per share offered by Verod is a 129 per cent of the last traded share price of the company on February 27, 2020, at 95 kobo per share, being the last business day prior to the date the execution of the TIA and announcement on the exchange, and a 208 per cent of the 60-traded day weighted average share price of 59 per share as at February 27, 2020.
By Adedapo Adesanya
Oil prices settled over 1 per cent higher on Monday as the market weighed the prospect of renewed US-Iran negotiations against escalating supply risks following escalations in the Middle East.
Brent crude futures gained $1.12 or 1.3 per cent to trade at $89.22 per barrel, while the US West Texas Intermediate (WTI) crude soared by 74 cents or 0.9 per cent to $83.23 a barrel.
The Middle East conflict escalated over the weekend, with the US conducting a ninth straight night of attacks against Iran, while American allies Kuwait and Bahrain reported more Iranian strikes.
Traders weighed hopes of renewed US-Iran negotiations against Yemen’s Houthis’ imposition of a naval blockade against Saudi Arabia. The group said the “maritime embargo” was retaliation for what it described as a Saudi siege of Yemen.
This development brings the US-Iran war officially to the southern entrance of the Red Sea and threatens an export route used by Saudi Arabia to bypass disruptions in the Strait of Hormuz. About 20 per cent of global oil supplies flowed through the waterway.
Iran had previously instructed the Houthis to prepare to close the Bab el-Mandeb Strait if the US continued attacking Iranian power infrastructure. A full closure could disrupt oil shipments equivalent to about 7 per cent of global supply.
Meanwhile, Iran has received a proposal for a 10-day ceasefire, and both Iran and the US have left open the possibility of renewed negotiations.
Market analysts noted that if a ceasefire does not materialise and the Strait of Hormuz remains largely closed while the Houthi threat to Red Sea shipping intensifies, the risk of a significant rebound in oil prices would be substantial.
Kpler analysts said in a note that there is also the possibility that a record amount of crude oil on water, estimated at around 1.35 billion barrels, could limit the next leg of oil price increases.
A drone struck a tanker loading crude oil at the Caspian Pipeline Consortium’s (CPC) Black Sea export terminal on Monday, forcing the suspension of exports for the second time in less than 24 hours.
The CPC system accounts for roughly 1 per cent of global oil supply, carrying crude primarily from Kazakhstan’s giant Tengiz, Kashagan and Karachaganak fields, with additional volumes from Russian producers in the Caspian region.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
