Law Union & Rock Insurance Plc makes significant strides to recapitalize
Determined to successfully scale through the ongoing recapitalization exercise, Law Union & Rock Insurance Plc has signed a Transaction Implementation Agreement (“TIA”) with Verod Capital Management who proposed to acquire 100% Issued Share of Law Union & Rock Insurance Plc.
It should be recalled that it was announced on the floor of the Nigerian Stock Exchange (“NSE”) on Friday 28 February 2020, that Verod Capital Management (“Verod”), a leading West-African private equity firm focused on investing in growing companies across various consumer-driven sectors predominantly in Nigeria and Ghana, had made a bidding offer to acquire 100% of Law Union & Rock Plc’s Issued shares.
The TIA for the proposed acquisition of 100% of the Issued Shares of Law Union & Rock Insurance Plc by Verod Capital Management was signed in concurrence with the Law Union & Rock Board’s directive in acceptance of Verod Capital Proposal for the acquisition.
Law Union and Rock Insurance Plc,has notified relevant regulatory authorities on Transaction Implementation Agreement (“TIA”) signed between her and Verod Capital Management.
The TIA will enable Verod to acquire 100% of Law Union’s shares via a Scheme of Arrangement with the existing shareholders, and recapitalize the Company, to meet the minimum capital requirement of N10 billion as required for General Insurance Businesses.
The implementation of the TIA is subject to approval of the Federal Competition and Consumer Protection Commission, the National Insurance Commission (NAICOM), and the Securities and Exchange Commission (“SEC”).
Amid skepticism and speculation surrounding the fate of Insurance companies as a result of the recapitalization directive, this development is very positive as it means that Law Union & Rock Insurance Plc will remain an independent company and continue to fulfil obligations to its clients and stakeholders.
Verod will inject funds into the business, strengthening the capital base beyond the N10 billion required by NAICOM for recapitalization.
The Managing Director of Law Union & Rock, Mr. Mayowa Adeduro, in a statement today said the proposed change of ownership stands to immensely benefit the Company and its staff, just as he commended the current Board for successfully piloting the affairs of the Company to its present position as one of the most liquid insurance companies in the country.
Verod is a prominent name in the African investment landscape, with notable investments in several companies across multiple verticals, with a formidable track record of excellence, and several local and international awards attesting to its performance. Verod has previously invested in the life insurance space in Nigeria and the general insurance industry will undoubtedly be positively impacted by Verod’s entry into the market.
CardinalStone Partners Limited, the advisors to Law Union on this Transaction said further details will be communicated to shareholders of the Company in due course.
