Originally Posted by Pharoah
What is this about Wema Assets divesting 515.6m units of Great Nigeria Insurance shares? What's the full gist?
I have now read the "official" notice to that effect and it reads "In compliance with the post listing requirement of the Exchange, Wema Asset Management is divesting
515.6 million Ordinary Shares from Great Nigeria Insurance through a special sale on Tuesday 13the may, 2008".
The Wema Bank Group is the holding coy of Wema Asset Management. I think diversion of funds from Wema Bank to Wema Asset Management has been one of the allegation against the suspended Group Managing Director (GMD). Probably the acting GMD is now taking steps to reverse such "risky" investments by getting the Wema Asset Management to divest its shares in GNI. This should, in a way, boost not only the liquidity but also the paper profit (and, hence, solvency) of Wema Bank as the sale is likely to be made at a profit, i.e. at a price higher than the cost of purchasing GNI shares some years back.