Verod to Pay Law Union Shareholders N1.23 Per Share
By Dipo Olowookere
Shareholders of Law Union and Rock Insurance Plc will receive N1.23 for each share of the company with them, the underwriting firm has confirmed.
This followed the acceptance of the offer from the new owners of the organisation, Verod Capital Management, a statement issued last Friday disclosed.
Law Union shareholders are giving up all their stakes in the company so as to keep the organisation alive as it plans to raise funds to remain in business.
According to Law Union, the board struck this deal and payment from Verod Capital so as to get full value for the investment of shareholders of the company.
It was stated that the agreement for the exit payment was reached by the board and shareholders at Law Union’s 51st Annual General Meeting (AGM) and court-ordered meeting (COM) last Thursday in Lagos, where the scheme of arrangement for the proposed acquisition of the company was discussed.
“The development is due to the mandatory regulation by the National Insurance Commission (NAICOM), increasing the minimum paid up share capital of all insurance and reinsurance companies with a deadline of June 30, 2020.
“Based on this, the minimum paid-up capital of Law Union and Rock was increased from N3 billion to N10 billion,” Chairman of Law Union Mr Remi Babalola, said during the court-ordered meeting which followed the AGM.
It was gathered that Verod Capital, under the deal, purchased the entire issued share capital of the company to which the company signed a Transaction Implementation Agreement with Verod, through its investment vehicle, Kanuri LUR limited.
Business Post reports that the N1.23 per share Verod is paying for each of the Law Union stock is 8.9 per cent higher than the price of the equity on the day of the COM last Thursday, N1.13 per share.
On Monday, the equity price of the company increased by 2 kobo or 1.8 per cent to N1.15 per share.