Continental Reinsurance denies plan to delist from NSE
Continental Reinsurance Plc has said it does not have any plan to delist from the Nigerian Stock Exchange.
The Managing Director, Continental Reinsurance, Dr Olufemi Oyetunji, disclose this while speaking at a press conference in Lagos.
According to him, the company only plans to change its business structure to attract capital.
He said, “We need all the capital we can get for this restructuring. So, it is not even a wise decision to delist. People saying that we plan to delist are spreading rumours.
“We have no plans to delist or to do a change of name for the company.”
Oyetunji noted that there were plans to transfer the various subsidiaries of the group to CRe Investments to enable CRe Nigeria to shore up its balance sheets and capital required for maintaining and expanding the business.
He noted that under the restructuring, the company’s shares would be transferred to CRe Investments in exchange for shares in CRe Investments.
He said, “As consideration for the transfer of the shareholders’ shares in CRe Nigeria to CRe Investments under the new scheme, shareholders have the option to receive one ordinary share of $1 each in the capital of CRe Investments for 176 ordinary share of 50 kobo each in the capital of CRe Nigeria as at the effective date.”
“The second option is for them to receive N2.04 per ordinary share of 50 kobo each held by the shareholders as at the effective date.
Oyetunji added that 92.66 per cent of shareholders voted in favour of the restructuring, while 7.34 per cent voted against it.
According to him, shareholders that choose to remain with the company can either decide to receive dividends from the company and bring more money back or to not receive dividends at all.
Oyetunji noted that following the advice from the company’s advisers on the fairness of the restructuring, the board had resolved to effect the restructuring by way of a scheme of agreement among members of the company in accordance with the provisions of Section 539 of the Companies and Allied Matters Act.
He added that the restructuring would give room for more attraction of capital to the company.