Excerpts from the NSE X Compliance report for the trading week ended February 1, 2019, show that Niger Delta Exploration Plc, an upstream oil firm may have taken a stake in Consolidated Hallmark Insurance Plc.
According to the notice, 1,130,000,000 ordinary shares of N0.50 were acquired by Niger Delta Exploration & Production Plc at N0.65 per share. Planet capital served as the stockbroker and issuing house for the transaction.
The insurance firm was one of the few that opted to go on with raising capital, despite the National Insurance Commission (NAICOM) scrapping tier based capitalization requirements. The scrapped rules where what led many insurance firms to raise additional capital, in the bid to be at the top tier.
At an Extraordinary General Meeting (EGM) held in November last year, shareholders gave approval for the private placement. CHI had, in October 2017, raised N500 million through a rights issue. Proceeds were to be used to acquire a life insurance firm and set up a HMO.
Consolidated Hallmark Insurance closed at N0.38 in today’s trading session, unchanged from the prior day. Year to date, the stock is down 23.7%. The stock however traded heavy volumes yesterday, with a total of 3.7 million shares valued at N1 million traded in.
About both companies
Consolidated Hallmark Insurance Plc (formerly Consolidated Risk Insurers Plc) was incorporated on 2 August 1991. The company changed its name from Consolidated Risk Insurers Plc to Consolidated Hallmark Insurance Plc following its merger with Hallmark Assurance Plc and The Nigerian General Insurance Company Limited in line with the consolidation reform of the National Insurance Commission (NAICOM) announced in 2005.
Consolidated Hallmark Insurance Plc came into effect from 1 March 2007. The firm was listed on the Nigerian Stock Exchange (NSE) on 22 February, 1998.
Niger Delta Exploration & Production Plc was incorporated on 25 March, 1992. The Group is engaged in the exploration for, development and production of oil and natural gas. The company currently trades on the NASD, which is the stock exchange for unlisted securities.