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UNISURE acquires 100% stake in African Alliance


April 17, 2008


-set to raise fresh funds


Proshare NI


The Universal Insurance Company Limited (UNISURE) has acquired 100 percent holding in African Alliance Insurance Company Limited. A source at UNISURE confirmed this to Proshare NI recently in Lagos Nigeria.


“We bought into African Alliance 100 percent and we are raising fresh funds through a Private Placement (PP) any moment from now” the source said.


“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, and this development would boost our earnings, because it is an acquisition” the source affirmed.


As at the time of filling in this report, further details could not be gathered as regards the acquisition or proposed placement of the insurance company.


Prior to this time, between October 24, 2007 and November 16, 2007 The Universal Insurance offered to investors by way of PP 5,000,000,000 ordinary shares of 50 Kobo at 95 Kobo per share.


Our source disclosed that the placement was fully oversubscribed and about N5.0 billion was returned to investors whose applications could not be honoured.


It is note worthy that the company just raised fresh funds barely six months which was oversubscribed; with the above amount returned to investors. Industry analyst would want to wonder the reason they want to further raise funds.


From the Nigerian Insurance Sector Report by Afrinvest West Africa, April, 2008 at the just concluded Insurance Future Summit held in Abuja Nigeria, UNISURE was not mentioned as one of the top 20 insurance companies in Nigeria.


The source further confirmed to Proshare NI that the company has opened more branches in recent times. This was contained as part of the future plans of the company to establish more branches in the placement memorandum made available to Proshare NI when the company raised funds through placement late 2007.


“We have just opened about 12 branches located in the East, North, Abuja, Benin, Asaba and other places” the source confirmed.


Our source also affirmed that UNISURE is promising to deliver a 30 Kobo dividend to its investors in year 2008. And the company just listed its shares on the floors of the Nigerian Stock Exchange (NSE) February, 2008.


The above is contrary to the forecast made by the company for the year ended 31 December, 2008, 2009 and 2010 shows that The Universal Insurance may give their shareholders a 0.6 Kobo, 0.9 Kobo, and N1.2 Kobo respectively.


Apart from these, the source confirmed to Proshare NI and UNISURE is investing more in properties. “We have converted our former Head Office complex located at Enugu to a hotel, called “Universal Hotel”, and we have other investments in properties in all the nooks and crannies in Nigeria” the source said.

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