Staco Insurance raises N1.6 billion via private placement


Back in February, 2017 Nairametrics analysts reported heavy trades on the Nigerian Stock Exchange for Staco Insurance, a company that hitherto had next to no liquidity. It aroused our suspicion that a major deal was in the offing. We now have evidence.

Staco Insurance Plc has just completed a N1.6 billion special private placement that has seen three new core investors emerge as part owners of the company.

The three investors, that collectively control about 34.2 per cent equity stake, are Imperial Assets Managers Limited, Electron Energy and Ventry Development Limited.

The change in shareholding of the company can be found in their annual report. But here are some key highlights;

  • Imperial Assets Managers Limited holds – 14.99 per cent% (bought 1.4 billion units)
  • Electron Energy Ltd holds – 10.71% (bought 1 billion units)
  • Ventry Development Ltd holds – 8.56% (bought 800 million units)
  • Seaforce Investment Ltd – 8.18% (used to be 12.5%)
  • Mr Sakiru Oyefeso – 5.04% (used to be 8.5%)
  • General public – 52.52% (used to be 72.5%)

From the annual report, Staco Insurance issued about 3.2 billion ordinary shares of 50kobo at the current trading price of 50 kobo resulting in a total purchase consideration of N1.6 billion. We believe Imperial, Electron and Ventry paid N700 million, N500 million and N400 million respectively in the private placement. Staco had wanted to raise N2 billion.

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Staco reported a loss after tax of N1.8 billion for the year ended December 2016 (2015: N46.4 million). Gross premium written in 2016 was N5.4 billion compared to N6.1 billion in 2015. Staco Insurance has a negative retained earnings of N4.9 billion.

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Staco Insurance share price has remained stuck at 50 kobo for the last 5 years.

Staco Insurance Plc was incorporated on 10th October, 1991. The group commenced operations on 1st October, 1994.

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