Shareholders Meet on Sale of Continental Reinsurance

November 27, 2018
Shareholders Meet on Sale of Continental Reinsurance

By Dipo Olowookere

Thursday, December 20, 2018 has been fixed for a meeting ordered by a federal high court sitting in Lagos on the sale of Continental Reinsurance Plc.

Yesterday, the board of the insurance company disclosed that it has received an offer from a firm known as CRe African Investments Limited for the purchase of all its outstanding and issued shares listed on the Nigerian Stock Exchange (NSE).

It was explained that CRe Investments intends to acquire the company, through a scheme of arrangement, in order to make its much needed restructuring exercise a reality.

Continental Reinsurance said CRe Investments was 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.

According to a statement by the insurer, this offer 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.

In another statement, Continental Reinsurance said on November 23, 2018, the court in Lagos directed the board to convey a meeting of shareholders for the “purpose of considering and if thought fit, approving (with or without modification) a scheme of arrangement between the company and the holders of its fully paid ordinary shares.”

In the statement, the firm said the meeting will take place at the Victoria Crown Plaza Hotel on Ajose Adeogun Street, Victoria Island, Lagos at 10:00am.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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