NIGERIA – Verod Capital, one of West Africa’s truly indigenous Private Equity firms, has signed a Transaction Implementation Agreement to buy 100 per cent stake in Law Union & Rock Insurance Plc.
“The board, management and shareholders are delighted with this development,” said Mr Ademayowa Adeduro, Managing Director and Chief Executive Officer of Law Union.
“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.”
Law Union stated that the signing of the agreement has given legal backing to Verod Capital to acquire it and that it had informed all necessary regulators on this development.
“The crucial phase of our recapitalisation exercise has been crossed with the signing of Transaction Implementation Agreement between Verod Capital Management Limited and the majority shareholders of Law Union & Rock Insurance,” Mr Adeduro said.
“We have subsequently informed the National Insurance Commission, the Securities and Exchange Commission and the Nigerian Stock Exchange about this development.”
With the TIA in place, Verod Capital now moves a step closer to buying 100 per cent stake in LUR, recapitalise the company to a minimum N10bn (about US$27.71 million) and also delist its share from the Nigerian Stock Exchange through Scheme of Arrangement.
According to Proshare Nigeria, Verod Capital gave an offer price of $1.23 kobo per share.
This according to the Nigerian daily represents a premium of 208 per cent to the 60-day volume weighted average share price and 140 per cent of the Company’s closing share price on 26 February 2020.
Verod is an Anglophone West Africa Private Equity firm focusing on investing equity and equity-linked capital in growth companies across various consumer-driven sectors in Nigeria, including in particular, the insurance industry.
Its current holdings include CSCS, Emzor pharmacy, metropolitan life (now tangerine life Ass), ARM Life, Greenspring College, Ikoyi and other ventures.