Great Nigeria Insurance (GNI) Plc has announced the crossing of 2.87 billion units representing 75 percent equity shareholding of Great Nigeria Insurance by Wema Asset Management Ltd to Insurance Resourcery Consultancy Services Ltd (IRCSL).
According to GNI, the cross deal marks the closure of the acquisition process that started in 2011.
The acquisition was initiated as a result of the Central Bank of Nigeria (CBN) directive to Banks to divest from Non-Banking subsidiaries. Following this, IRCSL submitted an Expression of Interest to Wema Asset Management and emerged as the winner of competitive bid process with a bid value of N3.24 billion, which represents a per share value of N1.13 (premium of 126 percent to the market price of N0.50).
The transaction value underscores the value inherent in one of Nigeria’s oldest Insurance Companies with attractive Real Estate portfolio and no debt on its balance sheet.
In a statement filed by the company and signed by Abiola Mosuro, Company Secretary “GNI Plc has 56 years of insurance underwriting which has enabled the company to master the business terrain and develop skills with competitive edge in service delivery and total customers satisfaction.. The company has over the years developed copetences in all classes of Insurance and financial products.
The company which was listed on the Nigerian Stock Exchange on October 11 2005 has received assurances from IRSCL that it will ensure GNI Plc remains listed despite its acquisition of a majority stake.
IRSCL, a special purpose vehicle set up to acquire 75 percent controlling interest in GNI is representing the interest of a consortium of investors.
According to Mrs. Cecelia O. Osipitan, the Chief Executive Officer of GNI Plc, the consummation of this transaction which represents the conclusion of a transaction process that started in 2011 will enable the current Board and Management of GNI Plc focus on unlocking the inherent value in the company with a view to delivering strong shareholder returns. This will be delivered through consolidation of market share in identified niche markets, excellent customer service, prompt claims payment and aggressive investment income.
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