Insurance Resourcery Consultancy Services Ltd Concludes Acquisition of 75% Equity Stake in GNI Plc

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Friday, October 07, 2016 4.42pm/ NSE

On 21 September 2016, 2,870,614,035 (Two Billion, Eight Hundred and Seventy Million, Six Hundred and Fourteen Thousand and Thirty-Five) units representing 75% equity shareholding of Greta Nigeria Insurance Pl were crossed through the negotiated cross deal window of the Nigerian Stock Exchange to Insurance Resourcery Consultancy Services Limited by Wema Asset Management Limited. This cross deal markes the closure of the acquisition process that started in 2011.

The acquisition was initiated as a result of the central Bank of Nigeria directive to Banks to divest from Non-Banking subsidiaries. On 28 September 2011, Insurance Resourcery Consultancy Services Limited (IRCSL) submitted an Expression of Interest (EOI) to Wema Asset Management and on 28 December, 2011 emerged as the winner of a competitive bid process with a bid value of circa N3, 243,793,860 (Three Billion, Two Hundred and Forty-three Million, Seven Hundred and Ninety-three Thousand, Eight Hundred and Sixty Naira only) which represents a per share value of N1.23 (premium of 126% to the market price of N0.50).

The transaction value underscores the value inherent in one of Nigeria’s oldest Insurance Companies with attractive Real Estate portfolio and nodebt on its balance sheet.

According to Mrs. Cecilia O. Osipitan, the Chief Executive Officer of GNI Plc, the consummation of this transaction which represents the conclusion of a transaction process that started in 2011 will enable the current Board and management of GNI Plc focus on unlocking the inherent value in the company with a view to delivering strong shareholder returns.

This will be delivered through consolidation of market share in identified niche markets, excellent service, prompt payment and aggressive investment income.

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