The board of Law Union & Rock Insurance, on Friday, announced an offer by Verod Capital Management, a venture capitalist, to acquire 100% of its entire 4,296,330,500 issued shares for N1.23 each, amounting to N5.284bn.
In a notice to the Nigerian Stock Exchange (NSE), Stanley Chikwendu, company secretary of Law Union & Rock, described Verod as “an Anglophone West Africa Private Equity firm focusing on investing equity and equity-like capital in growth companies across various consumer-driven sectors in Nigeria, including, in particular, the insurance industry.”
Besides insurance, Verod has investments in various sectors, like light manufacturing, consumer goods, business services, agriculture, education, healthcare, and financial services.
According to the notice, the N1.23 per share offer price represents a premium of 208% to the 60-day volume-weighted average share price, and 140% of the company’s closing price on February 26, 2020.
After due consideration, the board said it would subject it to the relevant regulatory approvals from the National Insurance Commission (NAICOM), Securities & Exchange Commission (SEC), the Federal Competition and Consumer Protection Commission, and the Nigerian Stock Exchange, recommend the offer to the shareholders for consideration and approval.
Until then, the directors advised shareholders of Law Union to exercise caution when dealing in the company’s shares until a further announcement is made.