Continental Reinsurance Africa to acquire Nigerian entity’s outstanding shares

Continental Reinsurance African Investments Limited is set to acquire all the outstanding and issued shares of its Nigerian entity, Continental Reinsurance Plc (CRe Nigeria).

A notice sent to the Nigerian Stock Exchange on Monday said the company is making the offer in order to initiate a much-needed restructuring exercise for Continental Reinsurance Nigeria, with a view to consolidating the company’s Nigerian operations and repositioning it for enhanced competitiveness in the global insurance market.

“It is intended that the transaction will be executed through a Scheme of Arrangement (the “Scheme”), under Section 539 of the Companies & Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 and other applicable rules and regulations,” the disclosure notice, signed by the company secretary, Abimbola Falana, said.

“CRe Investments is offering N2.04 per share for the 10,372,744,314 ordinary shares of 50 kobo each or 1 ordinary shares of US$1 each in the capital of CRe Investments for every 176 ordinary share of 50 kobo each held in CRe Nigeria (“Scheme Consideration”).”

The notice added that the proposed Scheme Consideration represents a 46.76 per cent premium to the last traded share price of the company on October 5, being the last business day prior to the date the proposal was received from CRe Investments. It also represents a 36.00 per cent premium on the trading price as at close of the last business day, November 19.

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“The Company has received the Securities & Exchange Commission’s No Objection to the Scheme,” the notice added.

“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.”

The firm, therefore, advised shareholders to exercise caution when dealing in Continental Reinsurance Nigeria’s shares until a further announcement is made by the company.

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