NIGERIA – Law Union & Rock Insurance Plc, one of the leading insurance firms in Nigeria, has announced plans to delist from the Nigerian Stock Exchange.

To kickstart the delisting process, the insurance firm said that it will commence the payment of N1.23 per share for every 50 kobo ordinary share to shareholders following an approval by the Nigerian Stock Exchange to delist its shares from the main board of the exchange.

The proposed transaction as contained in the TIA is expected to involve the transfer of a total of 4,296,330,500 ordinary shares held by the shareholders of the insurance firm.

With this development, the company said it was not only forging ahead in its recapitalisation plan but was also stronger than ever before based on its 2019 share capital, assets, and profits.

The insurance firm further noted that the board of Law Union & Rock secured the exit payment from its new investor in the quest to get full value for the investment of shareholders of the company.

Commenting on the company’s achievement and recapitalisation plans, the Managing Director, Mr Ademayowa Adeduro, said, “The company has concluded the process to voluntarily delist its shares form the exchange.”

The delisting of Law & Rock Insurance following the 100% acquisition of the company’s assets by Verod Capital Management Limited, an Anglophone Investment firm.

Verod Capital said that it will also recapitalise the company to over N10 billion to enable it comply with the ongoing recapitalisation exercise in the insurance industry.

Launched by the National Insurance Commission (NAICOM) recapitalisation programme is requiring life insurance firms to meet a minimum paid-up capital of N8.0 billion, up from N2.0 billion previously.

In the same vein, general insurance companies are required to raise their minimum paid-up capital to N10.0 billion from N3.0 billion previously.

In June, NAICOM gave insurance firms in Nigeria one more year to meet the recapitalisation obligation that was recently set for them.

The decision to extend the deadline became imperative for NAICOM considering how the Coronavirus pandemic has disrupted the activities of most companies, including the insurers.

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