Coronation Insurance Plc (NGX: WAPIC), formerly Wapic Insurance Plc has notified the Nigerian Exchange Limited that Coronation Capital (Mauritius) Limited on behalf of itself and other related parties, have approached the Board of Directors of the Company with an intention to acquire the shares held by other shareholders of Coronation Insurance, at an offer price of 65 Kobo per share, and subsequently delist the Company from NGX.
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Coronation Capital (Mauritius) Limited is the biggest single shareholder of Coronation Insurance Plc. A review of the insurer’s 2022 Annual Financial Statements showed that as at 31 December, 2022, Coronation Capital owned 9.79 billion shares of WAPIC, representing 41% of the company’s ordinary shares.
The announcement by WAPIC stated that the offer price of 65 Kobo represents a premium of 30% to the company’s share price f 50 Kobo on August 12, 2021 being the last traded prior to the offer date.
It is intended, the announcement went further to say, that the Proposed Transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.
The share price of Coronation Insurance Plc rose from 46 Kobo on 1st June, 2023 to peak at 99 Kobo during a trading session towards the end of the month. It lost 3.57% in Tuesday’s trading session to close at 81 Kobo.
The 65 Kobo proposed offer price will be a 34.34 lower than the 99 Kobo price point recorded earlier in June, a price that is also the 52 week high price.
Credit: Bloomberg
The offer price will however be 103.12% higher than the 52 week low price of 32 Kobo, a low level the insurer’s share price closed at in the last week of October 2022.
The Proposed Transaction is subject to the review and clearance of the regulators as well as the approval of the shareholders of the Company. The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders upon the convening of a General Meeting of the Company pursuant to an order by the Federal High Court.
If the conditions of the Proposed Transaction are satisfied and same is sanctioned by the Court, the Company would be delisted from NGX.
The company promised to communicate further developments to shareholders in due course. It advised Coronation Insurance’s shareholders and members of the public are advised to exercise caution in dealing in Coronation Insurance’s shares until further information is provided.
About the company
The Company was incorporated on 14 March 1958 as a private limited liability Company under the name of West African Provincial Insurance Company (WAPIC) Limited and was converted to a public limited liability company on the 31st day of August 1990 when the Company’s shares were listed on the Nigerian Stock Exchange.
The Company was issued a life insurance license by the National Insurance Commission (NAICOM) in the year 2000 and became a composite insurance business offering general and life insurance until March 1st 2007 when, in furtherance of the objective of complying with the requirements of the National Insurance Commission, the Company established Wapic Life Assurance Limited as a wholly owned Subsidiary to which it transferred the related life assets and liabilities.
The Company became a Subsidiary of Access Bank Plc in 2011 and was subsequently divested to enable compliance by the Bank with the Central Bank of Nigeria (CBN) Regulation on the Scope of Banking Activities and other Ancillary Matters on the permitted activities of Commercial Banks with International Authorization.
The Company’s principal activities include underwriting the various classes of insurance such as general accident, fire, motor, engineering, marine insurance aviation, oil and gas and other special risks.
In addition to its Life Subsidiary – Wapic Life Assurance Limited, the Company also has an International Subsidiary – Wapic Insurance (Ghana) Limited which was established on 21 January 2008, and associate companies – Coronation Merchant Bank Limited and Coronation Securities Limited.
At its 61st Annual General Meeting (AGM) held on Wednesday August 12, 2020, Shareholders approved the change of name of the company from “WAPIC INSURANCE PLC” to “CORONATION INSURANCE PLC.”
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
