Nigeria – Continental Reinsurance announces proposed sale of shares
Continental Reinsurance Plc says its board of directors has received an offer from CRe African Invetsments to acquire all its outstanding and issued shares.
The Company Secretary, Continental Reinsurance, Abimbola Falana, in a statement on Monday, said the company was making the offer in order to initiate a much-needed restructuring exercise with a view to consolidating its operations and repositioning it for enhanced competitiveness in the global insurance market.
The statement said the acquisition was intended to be executed 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.
It said the company was offering N2.04 per share for the 10,372,744,314 ordinary shares of 50 kobo each or one ordinary share of $1 each in its capital investments for every 176 ordinary share of 50 kobo each.
The statement added that the proposed scheme consideration represented a 46.76 per cent premium to the last traded share price of the company on October 5, 2018, being the last business day prior to the date the proposal was received.
The statement read in part, “The company has received the Securities and Exchange Commission’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 Continental Reinsurance’s shares until a further announcement is made.” Source: Punch