By Dipo Olowookere
The entire 4,296,330,500 outstanding ordinary shares of Law Union and Rock Insurance Plc have been delisted from the trading platform of the Nigerian Stock Exchange (NSE).
Business Post confirmed from a notice issued by the exchange that the action was taken today, Thursday, November 5, 2020.
The removal of the stocks of the insurance company followed the completion of the transfer of the equities to the new owners of the underwriting firm, Kanuri LUR Limited.
Recall that Verod Capital agreed to purchase the entire issued share capital of the company through its investment vehicle, Kanuri LUR Limited.
The buyer is paying N1.23 for each of Law Union stocks held by shareholders and to prevent trading in the shares of the company beyond the effective date of the scheme of arrangement, shares of the firm were placed on full suspension by the NSE on October 16, 2020.
At the market today, the exchange informed stockbrokers that the shares of the organisation were no longer on its trading platform following the voluntary delisting.
“We refer to our market bulletin of October 16, 2020, with reference Number: NSE/RD/LRD/MB56/20/10/16 wherein the market was notified of the full suspension placed on the shares of Law Union and Rock Insurance Plc to prevent trading in the shares of the company beyond the effective date of the scheme of arrangement by which Kanuri LUR Limited will acquire all the entire issued shares of Law Union.
“Following the conclusion of the above-referenced scheme of arrangement, and sequel to the approval of the company’s application to delist its entire issued share capital from the Nigerian Stock Exchange, please be informed that the entire 4,296,330,500 outstanding ordinary shares of Law Union and Rock Insurance Plc were today, Thursday, November 5, 2020, delisted from the daily official list of the exchange,” the circular from the NSE said.
Law Union agreed to sell the firm to Verod 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.
