VFD Group sells stake in NEM In­sur­ance

Business Day (Nigeria) - - COMPANIES & MARKETS - OLUFIKAYO OWOEYE

VFD Group and other key stake­hold­ers have agreed to sell a sig­nif­i­cant block of its stake in NEM In­sur­ance Plc. Ac­cord­ing to VFD, a com­bined block of 1.6 bil­lion or­di­nary shares of NEM In­sur­ance Plc, rep­re­sent­ing about 30% of the In­sur­ance Com­pany’s is­sued share cap­i­tal, was sold to new share­hold­ers, spon­sored by the Direc­tors of the in­sur­ance com­pany.

VFD Group re­vealed that the de­ci­sion to exit the In­sur­ance com­pany was reached fol­low­ing an in­con­clu­sive dis­cus­sion with the man­age- ment of the com­pany on modal­i­ties for work­ing to­gether in pur­su­ing its vi­sion.

‘We have had ex­ten­sive dis­cus­sions with the Man­age­ment and Board of NEM In­sur­ance Plc in the last cou­ple of months over our in­ter­est in work­ing with the team, to un­lock the la­tent value we see in them,” the co­mopany said.

“How­ever, as we could not agree on the modal­i­ties for work­ing to­gether in pur­su­ing this vi­sion, we re­cently reached an am­i­ca­ble un­der­stand­ing and have thus de­cided to exit our in­vest­ment in this great com­pany.’

In a re­lated de­vel­op­ment, VFD Group has also an­nounced the suc­cess­ful com­ple­tion of its cap­i­tal raise in em­barked on in De­cem­ber 2018.

The com­pany re­vealed that it raised N2.78bil­lion from rights is­suance and pri­vate place­ments against the orig­i­nal N2­bil­lion tar­get. The of­fer which opened on De­cem­ber 3, 2018, had Kairos Cap­i­tal Lim­ited act­ing as the fi­nan­cial ad­viser, and closed on De­cem­ber 31, 2018.

The new cap­i­tal drive will en­able the Group to pur­sue its de­sire to es­tab­lish a pres­ence in ev­ery key sec­tor of the fi­nan­cial ser­vices in­dus­try, in­clud­ing bank­ing.

It would be re­called that Group Manag­ing Di­rec­tor of the firm, Nonso Ok­pala had dur­ing the firm’s An­nual Gen­eral Meet­ing hinted on the plans by the group to ac­quire a na­tional bank li­cense this year. He also re­vealed plans to con­vert to a Pub­lic Lim­ited Li­a­bil­ity Com­pany.

VFD Group was in­cor­po­rated on 7th July 2009 and com­menced busi­ness op­er­a­tions in 2011. The com­pany’s sub­sidiaries in­clude VFD Mi­cro­fi­nance Bank, An­cho­ria As­set Man­age­ment, and Ger­maine Auto Cen­ter.

N.E.M. In­sur­ance Plc is a ma­jor player in the in­sur­ance in­dus­try pro­vid­ing both gen­eral and non-life in­sur­ance cover. Its shares are cur­rently trad­ing at N1. 91 on the floor of the stock ex­change, with a one year re­turn of 19.38%.

Edited by LOLADE AKINMURELE (lo­ladeak­in­[email protected]) Graph­ics: CHINEDUM ONYEMA

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