By Dipo Olowookere
A full suspension has been placed on one of the insurance companies listed on the Nigerian Stock Exchange (NSE), Law Union and Rock Insurance Plc.
A notice to stockbrokers on Friday confirmed this development, noting that this will make it impossible for holders of the company’s stocks to trade them on its trading platform from today.
Explaining the rationale behind this action, the NSE said this is to stop investors from trading the shares beyond the date fixed for the full acquisition of the stocks by Kanuri.
Business Post recalled that last month, shareholders of Law Union and Rock Insurance agreed to collect N1.23 for each share of the company with them from the new owners of the firm.
It was reported that Verod Capital agreed to purchase the entire issued share capital of the company through its investment vehicle, Kanuri LUR limited.
The deal was struck by Law Union shareholders so as to keep the organisation alive as it plans to raise funds to remain in business in line with the new requirements of the National Insurance Commission (NAICOM) on minimum capital base.
Today, in the circular, the NSE said, “Dealing members are hereby notified that trading in the shares of Law Union and Rock Insurance Plc was today, Friday, October 16, 2020, placed on full suspension.
“The suspension is necessary to prevent trading in the shares of the company beyond the effective date, i.e., the date the certified true copy (CTC) of the court sanction of the scheme of arrangement for Kanuri LUR Limited to acquire the entire issued and fully paid ordinary shares of 50 kobo each in Law Union held by the scheme shareholders was registered with the Corporate Affairs Commission (CAC).”
Concluding, the notice stressed that, “Please also be informed that this scheme of arrangement will result in the delisting of the company from the daily official list of the Nigerian Stock Exchange.”
Adedapo Adesanya