Recapitalisation: Investor to Acquire Continental Reinsurance

November 26, 2018
Recapitalisation: Investor to Acquire Continental Reinsurance

By Modupe Gbadeyanka

The board of Lagos-based Continental Reinsurance Plc announced on Monday, November 26, 2018 that it has received an offer from CRe African Investments Limited, which intends to acquire all its outstanding and issued shares listed on the Nigerian Stock Exchange (NSE).

According to the insurer, CRe Investments wants to acquire the company in order to make its much needed restructuring exercise a reality.

Continental Reinsurance plans to reposition itself as one of the top players in the insurance industry in the country and it said this acquisition will make this dream come true.

The board of the company explained in a statement that this acquisition would be carried out through a Scheme of Arrangement under Section 539 of the Companies and Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 and other applicable rules and regulations.

The statement said CRe Investments is offering N2.04k per share for the 10,372,744,314 ordinary shares of 50 kobo each or one ordinary shares of $1 each in the capital of CRe Investments for every 176 ordinary share of 50 kobo each held in Continental Reinsurance.

It was disclosed that this represents a 46.76 percent premium to the last traded share price of the Continental Reinsurance on October 5, 2018, being the last business day prior to the date the proposal was received from CRe Investments and a 36.00 percent premium on the trading price as at close of the last business day; November 19, 2018.

“The company has received the Securities and Exchange Commission (SEC)’s No Objection to the Scheme. The Scheme is also subject to the approval of the shareholders at a Court-Ordered Meeting as well as the sanction of the Federal High Court.

“Further details will be communicated to the market upon relevant approvals from shareholders and regulators.

“Shareholders are advised to exercise caution when dealing in CRe Nigeria’s shares until a further announcement is made,” the statement stated.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Leave a Reply

Debt Repayment by 9mobile Excites Banks' Shareholders
Previous Story

Debt Repayment by 9mobile Excites Banks’ Shareholders

Next Story

Police Arraign Jumia Staff for Phone Theft

Latest from Economy

Don't Miss