By Dipo Olowookere
The buying and selling of Continental Reinsurance shares by shareholders on the local equity market have been suspended by the Nigerian Stock Exchange (NSE).
The suspension was announced by the regulator in a circular issued yesterday to members of the investing community and it takes effect from Thursday, November 28, 2019.
It was explained that the action was taken to prevent further trading in the shares of the company as a result of proposed sale of the firm’s equities by an investor.
Shares of Continental Reinsurance were initially suspended in July 2019 by the NSE, but was lifted after the Securities and Exchange Commission (SEC) directed the company to reconvene a court ordered meeting as a result of issues that arose from the first meeting.
In the circular issued by the Head of Listings Regulation Department at NSE, Mr Godstime Iwenekhai, the exchange said, “We refer to our market bulletin of July 18, 2019, with reference number: NSE/RD/LRD/MB39/19/07/17, notifying dealing members of lifting of the suspension initially placed on trading in shares of Continental Reinsurance Plc (CRe) to allow the company reconvene another Court Ordered Meeting to consider the Scheme of Arrangement as directed by the Securities and Exchange Commission (SEC).
“Dealing members are hereby notified that trading in the shares of CRe has been suspended effective today, Thursday, November 28, 2019.
“The suspension is to prevent further trading in the shares of the company beyond the effective date (the date the Certified True Copy (CTC) of the court sanction will be registered with the Corporate Affairs Commission) of the Scheme of Arrangement by which CRe African Investments Limited (CRe Investments) will acquire all the shares of CRe Nigeria.”
Adedapo Adesanya