It has been announced that all outstanding and issued shares of Pan-African reinsurer Continental Reinsurance’s Nigerian entity, CRe Nigeria, are to be bought back by what appears to be the firm’s investment arm, CRe Investments.
The firm has stated that it’s making the offer in order to initiate a “much needed restructuring exercise for CRe Nigeria, with a view to consolidating the CRe Nigeria’s operations and re-positioning it for enhanced competitiveness in the global insurance market.”
It is intended that the transaction will be executed through a Scheme of Arrangement under Section 539 of the Companies & Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 and other applicable rules and regulations.
The proposed Scheme consideration represents a 46% premium to the last traded share price of the company on 5 October 2018, being the last business day prior to the date the proposal was received from CRe Investments.
The Scheme is also subject to the approval of the shareholders at a Court-Ordered Meeting as
well as the sanction of the Federal High Court.
