There are strong indications that investors in the defunct Globe Reinsurance Plc may succeed in convincing the core investor of Nigeria Reinsurance Corporation, Mr. Jimoh Ibrahim, to sell off its 34 per cent equity in Nigeria Re for N5.6 billion.
Investigations carried out by Financial Vanguard revealed that Mr. Jimoh Ibrahim is insisting on trading his share in Nigeria Re for nothing less than N6 billion while Globe Reinsurance’s investors are negotiating for N5.6 billion. But it is not certain if Ibrahim would bow to pressure to give up his shares in Nigeria Re.
Globe Reinsurance is among the companies that did not meet the February 27, 2006 deadline for recapitalization in the insurance industry. However, the company was able to raise its capital after the expiration of the deadline through a private placement which commenced on August 29 and ended on September, 2006, of six billion ordinary shares of 50 kobo each at 85 kobo per share.
And from that private placement, Financial Vanguard learnt, the company realised well over N15 billion and had, since, been pressurising Mr. Ibrahim to trade off his shares of Nigeria Re because the company cannot operate in the name of Globe Reinsurance any more.
It would be recalled that Mr. Jimoh Ibrahim acquired 34 per cent of shares of the Jigawa State Government in Nigeria Re, which made him a major investor in the reinsurance company. Also, not long ago, the business mogul injected N7.5 billion capital in the reinsurance company.
The Acting Managing Director of the company, Mr. Abiola Ekundayo, confirmed, in a recent interview with Proshare that NAICOM had issued a directive to Nigeria Re and Globe Re to conclude their merger talks by May 2008, a process which the duo commenced with the signing of a Memorandum of Understanding on February 28, 2008.
However, the over N15 billion raised by Globe Re in the 2006 private placement is still with Afribank Capital and the company had since refused to return the money to those who invested in the company. Ekundayo was quoted as saying, “Investors’ funds are with Afribank Capital Markets Limited, who were one of the joint issuing houses when we had our placement. Investors’ money are safe and intact; nobody issued any cheque to us at Globe Reinsurance, any cheque that was written and issued was to Afribank Capital.
According to him, “The placement did well by way of over-subscription and they are still in the process of allotment of the shares, which has not been done, no certificate has been issued and no money refunded.”
The last official result posted by the company was in June, 2006, showing that Globe Reinsurance posted a gross premium of N1.174 billion, a profit before tax of N323.5 million and a profit after tax of N297.5 million in the period under review.
Globe Reinsurance Plc is 80 per cent owned by five insurance companies - AIICO Insurance Plc, Prestige Assurance Plc, Leadway Assurance Company Limited, NICON Insurance and Niger Insurance Plc - while the remaining 20 per cent shares are held by other Nigerian investors.
Write Comment
Please keep the topic of messages relevant to the subject of the article.
Personal verbal attacks will be deleted.
Please don't use comments to plug your web site. Such material will be removed.
Just ensure to *Refresh* your browser for a new security code to be displayed prior to clicking on the 'Send' button.
Keep in mind that the above process only applies if you simply entered the wrong security code.
Copy This Idea and Start Making N650,000+ monthly beginning from today!
This simple business has made me N650,00+
in one month by learning where to find unique
information and making it available to
particular groups of people.
Easy,Simple, Quick Setup.
Completely legitimate.No scam!
Get report for FREE Here!
FxPro.com - Trade Forex Like a Pro
Flexible leverage up to 1:500
Low spreads from 1.8 pips www.FxPro.com
MyNaijaNews
Naija entertainment, lifestyle, sports, music reviews, fashion, technology, mobile phone reviews, books, classified ads, greeting cards, etc....It's your content. go get it......
Comments (1)
