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Nigerian Stock Exchange delists Oasis Insurance

By on January 8, 2015

The Nigerian Stock Exchange (NSE) has delisted Oasis Insurance Plc from its daily official list following the acquisition of the company by FBN Insurance Limited, a subsidiary of FBN Holdings Plc.

According to NSE, following the conclusion of the acquisition, Oasis Insurance applied for voluntary delisting from the exchange.

FBN Insurance had acquired 71.2 per cent equity interest in Oasis Insurance through  a  block divestment in February 2014.

In accordance with Rules of the Securities & Exchange Commission, FBN Insurance Limited made a mandatory take-over bid for the remaining 28.8 per cent equity
interest in Oasis Insurance Plc. By the close of the takeover bid on 31 July 2014, FBN Insurance Limited received a total of 1,289,493,953 ordinary shares bringing its shareholding in Oasis Insurance Plc  to approximately 91.1 per cent. However,  FBN Insurance Limited elected to exercise its rights under Section 146(2) of the  Investments and Securities Act to compulsorily acquire shares belonging to the minority shareholders having crossed the 90 per cent threshold.

At the end of the 20-day statutory notice period FBN Insurance Limited increased its holdings by an additional 22,603,617 shares bringing its holdings in Oasis Insurance Plc to approximately 91.4 per cent. The company thereafter  transferred the sum of N310,649,730 to FBN Registrars (as consideration for the outstanding 560,808,895 shares or 8.6 per cent)to keep in trust for shareholders who are yet to tender their share certificates By this action, FBN Insurance Limited hold 100 per cent equity interest in  Oasis Insurance Plc, hence its application to NSE for delisting.

The acquisition would enable the FBN Holdings to deepen its insurance business as FBN Life seeks to harness Oasis Insurance’s relative strengths, thereby creating synergies for the development of the insurance business.

Also, Oasis Insurance is expected to leverage FBN Holdings’ wide network, including the international spread of its flags.

Speaking on the acquisition,  the  Group Chief Executive Officer, FBN Holdings, Mallam Bello Maccido, had  the group would leverage on its acquisitions to consolidate its performance.

He said the group has increased investments across its business lines with a view to strengthening its leadership positions pointing out that the recent acquisitions of ICB banks across four West African countries, the acquisition of Oasis Insurance and on-going efforts to strengthen the investment banking and asset management would help to enhance benefits to all stakeholders, especially the shareholders.

 

[ThisDay]