26 C
Lagos
Thursday, October 29, 2020
- Advertisement -

Law Union and Rock Insurance Shareholders Accept Verod Capital’s Acquisition Offer

Opinion

#EndSARS Protest: A Fundamental Lesson in Democratic Governance – By Bola Ahmed Tinubu

I heavily grieve for those who have lost their lives or been injured during the period of these protests. My deepest sympathies...

#EndSARS Protests: Nigeria’s President Could Have Prevented Escalation of Violence but Poured Oil on the Fire Through His Silence – By Chidi Anselm Odinkalu...

Located in the central regions of Nigeria’s Delta State, Ughelli is a sleepy city in the Western Niger Delta and the unlikely...

We Must Get Children Back to Learning – But Business As Usual is Not an Option By Jutta Urpilainen and Henrietta Fore

A global joint op-ed by the EU and UNICEF on education for children “One child, one teacher, one book,...

Subjecting Anti-SARS Agitation to Political Interpretation is Jejune Partisan Stimulus By Chris Okotie

Chairman Mao once posited that if the people no longer fear your power, it is because another power is on its way....

Nigerian insurer Law Union and Rock Insurance Plc’s shareholders have accepted an offer of N1.23 per share for every 50 kobo ordinary share from Verod Capital Management.

The company’s board approved Verod Capital’s offer to purchase its entire issued share capital after both entities executed a a Transaction Implementation Agreement, through Verod’s investment vehicle, Kanuri LUR limited. Verod Capital is controlled by investment bankers Danladi Verheijen and Eric Idiahi.

Shareholders of Law Union and Rock Insurance approved the the agreement at the company’s fifty-first Annual General Meeting and Court Ordered Meeting held at the MUSON Center, Lagos, where the Scheme of Arrangement for the proposed acquisition of the company was discussed.

Law Union and Rock’s paid up capital has been increased from N3 billion to N10 billion in line with the regulations of the National Insurance Commission (NAICOM), which has directed all insurance companies to raise their share capital to the statutory minimum on or before June 30, 2020.

Remi Babalola, chairman, Law Union and Rock Insurance said: “Following negotiations with Kanuri LUR and further to advice from its advisers, the Board resolved to recommend the Proposal to the Shareholders for their kind consideration at a meeting to be convened by an order of the Federal High Court. The Board has further resolved to effect the proposal by way of a Scheme of Arrangement under Section 539 of the Companies and Allied Matters Act Chapter C20, laws of the federation of Nigeria 2004 as your Board believes that same will serve the best interests of both the Company and its shareholders.”

Mr Babalola added that Kanuri LUR’s proposal formally announced its intention to acquire Law Union resulting in the Company being re-registered as a private company, noting that the proposal will be implemented through Kanuri LUR and its designated nominee, who will receive all the shares under the Scheme upon the Scheme taking effect.

According to the proposed Scheme Consideration, the offer represents a total value of N1.23 per share, a 129 per cent of the last traded share price of the Company on February 27, 2020 at N0.95 per share, being the last business day prior to the date the execution of the TIA and announcement on the Exchange, and a 208 per cent of the 60 – Traded Day weighted average share price of N0.59 per share as at February 27, 2020.

Law Union’s chief executive Ademayowa Adeduro said that Law Union and Rock’s performance improved over the years especially since its acquisition a the consortium of investors (Alternative Capital Partners and Swanlux Solutions and Services Limited in 2012).

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Business Profiles

Theresa Ekong

Theresa Ekong is the Acting Head of Compliance at Providus Bank. She has over 18 years industry experience cutting across banking Operations,...

Mark Oguh

Mark has 22 years experience in the Banking industry covering Operations, Audit and Financial Control. He is also a...

Aina Amah

Aina Amah is a graduate of Economics from the University of Lagos and an MBA from the University of Nicosia, Cyprus. She...

Uyi Osagie

Uyi Osagie is the Chief Financial Officer of Allianz Nigeria. He joined Allianz as Financial Controller from 2014 and rose through the...

Usen Udoh

Usen Udoh is the Group Chief Human Resources Officer of the Dangote Group where he oversees a team of busines unit human...