The Nigerian Stock Exchange (NSE) has approved application by Law Union & Rock Insurance seeking voluntary delisting of its shares from the main board of the Exchange.
The voluntary delisting is part of ongoing acquisition of Law Union by Anglophone West Africa private equity firm, Verod Capital Management.
Verod has offered N5.3 billion for the acquisition of the entire share capital of Law Union in a major bid that may signal the opening up of mergers and acquisitions in the Nigerian insurance industry.
The board of Law Union had confirmed that it received a binding offer from Verod Capital seeking to acquire the entire 4.296 billion ordinary shares of 50 kobo each of Law Union at N1.23 per share.
The offer thus valued Law Union at N5.28 billion. The offer price of N1.23 per share represented a premium of 208 per cent on the 60-day volume weighted average share price and 140 per cent on Law Union’s closing share price on February 26, 2020.
The approval of the NSE is one of the regulatory approvals needed to consummate the transaction.
The transaction is still subject to the approval of National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC) and the Federal Competition and Consumer Protection Commission (FCCPC).