Nigerian-based Investment company, Verod Capital has acquired 100% of a local Nigerian insurance company quoted on the Nigerian Stock Exchange, Law Union & Rock Insurance Plc.
The announcement was made at the official signing ceremony of a Transaction Implementation Agreement (TIA) between Verod Capital Management Limited and the majority shareholders of Law Union & Rock Insurance last week.
Law Union & Rock Insurance currently has total outstanding shares of 4.3 billion with a market capitalisation of N3.9 billion as at the close of transactions on Friday, February 28, 2020.
According to the board of Law, Union and Rock, Verod Capital’s offer of N1.23 per share “represents a premium of 208 percent to the 60-day volume weighted average share price and 140 percent of the company’s closing share price on February 26, 2020.”
“The board has fully considered this offer and will, subject to obtaining all relevant regulatory approvals from the National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC), Federal Competition and Consumer Protection Commission, and the Nigerian Stock Exchange, recommend the offer to the shareholders of the company, for their consideration and approval,” it added.
“Further details will be communicated to shareholders of the company in due course. Shareholders of Law Union are advised to exercise caution when dealing in the company’s shares until a further announcement is made,” the board said.
The Stock will subsequently be de-listed from the NSE thereafter.
In September last year, Verod Capital also acquired 100% of Metropolitan Life Insurance Nigeria Limited from South African-based Momentum Metropolitan Holdings Limited.
