Acen Insurance Plc to be acquired by Sovereign Trust Insurance Plc
December 5th, 2008 Tunde Brown || tunde.brown@stockmarketnigeria.com
After several rebuffs by the shareholders of Acen Insurance Plc on acquisition bids by insurance companies who made it through the recapitalization deadline, an approval has finally been granted for its acquisition by Sovereign Trust Insurance Plc.This is on a share exchange basis of 1 Sovereign Trust share for 85 shares in Acen Insurance. Some of the shareholders expressed concern over the basis of exchange, but was consoled by the fact that the position was better than an outright loss in investment.
The Chairman of Acen Insurance Plc, Oba Adesina, at the extra-ordinary meeting said, “We are here for one singular purpose today, to receive your blessing for the acquisition of Acen Insurance Plc by Sovereign Trust Insurance Plc, and I encourage you to support the acquisition.” Shareholders then gave a unanimous support, the acquisition being the only option for the company to grow. He further hinted that the last offer by the company was unsuccessful, adding that investors who subscribed to the offer would get their money back with interest.
It would be recalled that the stock of Acen Insurance Plc was de-listed from the Nigerian Stock Exchange for falling short of certain listing requirements in a clean up exercise by the Exchange about two months ago. The Chairman and Managing Director of Sovereign Trust Insurance Plc, Mr. E. F. Faloughi and Mr. Onaolapo, attended the extra-ordinary general meeting as observers.
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