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African Alliance opens Private Placement



Proshare NI

April 26, 2008 at 07:09 GMT


African Alliance Insurance Company Limited, (AA) which has been acquired 100 percent by The Universal Insurance Company Limited (UNISURE) earlier this week, began a Private Placement (PP).


Though as at the time of filling in this report, Proshare NI could not get much detail on the Placement.


A source at Head Office of the company situated at the old Niger House in Lagos Island, confirmed to Proshare NI that indeed the company was raising fresh funds through a Placement to make it a full life insurance company for UNISURE that just acquired it.


Again, without prejudice Proshare NI could not lay hands on the details of the offer by way of the prospectus. “We have not seen the prospectus either, but I can confirm that the placement opened this week” the source said.


Prior to this time, a source at UNISURE affirmed that the price for the placement is N2.00 per share and a minimum of 100 million units, the placement will begin anytime in the next few days” the source said.


In the same vein, our source at African Alliance confirmed to Proshare NI that some major investors divested their investment to the tune of 70 percent, “this made the remaining investors with only 30 percent to make up their minds and sold off to UNISURE; which gave them a 100 percent acquisition right of African Alliance” the source said.


The source further affirmed that UNISURE will now have a life company; which will enable them do a life insurance business.


From the Nigerian Insurance Sector Report by Afrinvest West Africa, April, 2008 at the just concluded Insurance Future Summit held in Abuja Nigeria, neither UNISURE  nor African Alliance were mentioned as one of the top 20 insurance companies in Nigeria.


Issuing house to the offer is Unex Capital Limited, when Proshare NI visited the company to seek further clarifications on the African Alliance PP, our source at the company confirmed that one million units were minimum at N2.00 per share.


“With your N2.0 million we you will fill our form and we allocate one million units to you” the source confirmed.


Proshare could not lay hands on the Placement prospectus from Unex Capital the Issuing House to the placement or get further details on it.


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