Shareholders of Law Union and Rock Insurance Plc have accepted an offer of N1.23 per share for every 50 kobo ordinary share they held from the new owner of the company, Verod Capital Management.
The agreement for the exit payment was reached by the board and shareholders at Law Union and Rock Insurance 51st Annual General Meeting and Court Ordered Meeting held on Thursday, September 10, 2020, at Muson Centre, 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 the firm was increased from N3 billion to N10bn.
The proposed transaction as contained in the TIA is expected to involve the transfer of a total of 4.296bn ordinary shares of 50 kobo each of law Union held by the Scheme Shareholders to Kanuri LUR or any other nominee of Kanuri LUR.
Chairman, Law Union and Rock Insurance, Mr Remi Babalola, said shareholders would not maximise shareholder value if merger options were considered.
The shareholder groups commended the firm on its performance and growth of the company, saying the action wouldn’t result in mass retrenchment.
The Managing Director, Law Union, Mr Ademayowa Adeduro, on his part, said the company has performed excellently since its acquisition by the consortium of investors which led to a turnaround from a loss-making position of N1.3 billion in the financial year-end 2012 to the profitability of N250 million in the following year and this has grown to N860m in 2019.
