Verod Capital is set to buy a 100% stake in Law Union & Rock Insurance Plc, as the latter got its legal backing from the Transaction Implementation Agreement (TIA). The development is part of Verod’s recapitalisation plan.
Clearing the air, the Managing Director and Chief Executive Officer, Law Union, Ademayowa Adeduro, explained that his company has informed all necessary regulators on the development.
Details: “The crucial phase of our recapitalisation exercise was crossed on February 27, 2020, with the signing of Transaction Implementation Agreement between Verod Capital Management Limited and the majority shareholders of Law Union & Rock Insurance.
“We had subsequently informed the National Insurance Commission, the Securities and Exchange Commission and the Nigerian Stock Exchange about this development,” he said.
He explained that the TIA gave legal backing to Verod Capital to buy 100% stake in LUR, recapitalise the company to a minimum N10bn and also delist its share from the Nigerian Stock Exchange through Scheme of Arrangement.
About Verod Capital: The Anglophone investment company with a substantial interest in Nigeria and West Africa, has stakes in CSCS, Emzor pharmacy, metropolitan life (now tangerine life Ass), ARM Life, Greenspring College, Ikoyi and other ventures.
“The board, management and shareholders are delighted with this development. Our recapitalisation exercise will be concluded in a couple of months to this time, as we keep to our promise of regular briefing to our esteem clients and brokers,” he added.
Recall that Nairamterics reported it when South African company, Momentum Metropolitan Holdings, exited the Nigerian market by selling off its subsidiary in Nigeria as the National Insurance Commission (NAICOM) begin its shake-up process by downsizing the number of players in the Nigerian insurance market.
Momentum Metropolitan Holdings sold its 100% stake in Metropolitan Life Nigeria to Verod Capital Management, an investment firm based in Nigeria. This deal comes three years after Momentum Metropolitan acquired the 50% stake of United Bank for Africa to become majority stakeholder.