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while the registration of the ordinary shares of the company with the Securities and Exchange Commission (SEC) will be withdrawn and the firm will be re-registered as a private company limited by shares.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
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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