Private Equity firm Verod Capital has received a ‘No Objection’ clause from the Nigerian Securities and Exchange Commission (SEC) for its proposed N5.3 billion acquisition of Law Union and Rock Insurance Plc.
Law Union & Rock Insurance in a statement to the Nigerian Stock Exchange (NSE), signed by its Company Secretary Stanley Chikwendu, said the acquisition would be consummated through a Scheme of Arrangement, and that: “Additional updates/announcements would be made in due course.”
The insurance firm announced in February 2020, that the company had received a binding offer from Verod Capital management to acquire 100 percent of the issued shares of the Company at an offer price of N1.23 per share.
Law Union & Rock closed trading at N1.04 per share on Tuesday, equivalent to an 18 percent premium for shareholders.
Verod is a private Equity firm focusing on investing equity and equity-linked capita in growth companies across various consumer-driven sectors in Nigeria.
Other regulatory approvals are needed from the National Insurance Commission (NAICOM), Federal Competition and Consumer Protection Commission and the Nigerian Stock Exchange (NSE) for the deal to be concluded.
MoneyCentral reported this week that Insurers are having a difficult time as fixed income yields slide in Nigeria.