Minority shareholders agree on outright acquisition of Continental Reinsurance

AN OVER WHELMING NUMBER of minority shareholders of Continental Reinsurance Plc sealed the fate of the company last week as they voted in favour of a proposal by CRe African Investments Limited to acquire all their outstanding and issued shares for cash or shares.

The acquisition, scheduled to occur on January 4, 2019 was considered in a court-ordered meeting held December 20, 2018 as directed by the Federal High Court, Lagos for the purpose of the minority shareholders, a regulatory statement filed with the Nigerian Stock Exchange (NSE) revealed.

In notifying the NSE and relevant stakeholders of the development, the company in a statement signed by Patricia N. Ifewulu, its acting company secretary, noted that the scheme consideration was revised upwards from N2.04 to N2.10 per share.

“The revised scheme consideration represents a 51.08 percent premium on the share price of CRe Nigeria as at the close of trading on October 5, 2018 which is N1.39; being the last business day prior to the date on which the proposal was received from CRe African Investments Limited,” the company stated.

Continental reinsurance Nigeria further noted that an application has been submitted for the final approval of the Securities & Exchange Commission, subsequent to which an application will be submitted to the Federal High Court for the sanction of the scheme.