Eaton Acquisitions Limited, an investment company, has increased its stake in NEM Insurance Plc to 9%, days after it announced the acquisition of 4% of the insurance company.
While the initial 130 million shares sold at ₦4 each, representing a premium of 40.35% against the closing share price of ₦2.85, the new shares were acquired at a lower value.
Eaton is seeking to acquire 10% of the insurance company. The latest acquisition puts it within a distance of its target.
“There is no better option in the market from the perspective of effective leadership, strategic opportunities and reforms for growth in the industry, broad sharing holding base that engenders good corporate governance, and a network of current and potential shareholders for enhanced business development,” Eaton Acquisitions’ managing director, Olaleye Adeyinka, said.
“We can’t say much about the strategic vision of the company yet as it is in the purview of management and the board, but we have unalloyed confidence in both organs of the company’s governance.”
The investors said they increased their stakes in the company because it offers strategic opportunities and growth.
“We intend to acquire more shares until we meet the mandate of our Board to acquire 10% of the company’s shares,” Olaleye said.
Although the Eaton boss expressed confidence in the ability of current NEM’s leadership, he said his company is desirous of gaining board representation in view of its dominant shareholding stake in the company.
NEM Insurance closed at N3.00 in today’s trading session on the NSE, unchanged from the prior day.
Results for the half year ended June 2018 show gross premium written increased from N8.1 billion in 2017 to N9.1 billion in 2018. Profit before tax increased from N1.4 billion in 2017 to N1.7 billion in 2018. Profit after tax also rose from N1.2 billion in 2017 to N1.5 billion in 2018