Vanguard News Nigeria

Eaton targets 10% stake, expresses confidence in NEM Insurance Board

By Peter Egwuatu

Eaton Acquisitions Limited  has expressed confidence in the ability of current NEM’s Insurance leadership to deliver growth, noting that it is desirous of gaining board representation in view of its dominant shareholding stake in the company.

File: insurance

To this effect, Eaton, an investment company, has increased its stake in NEM Insurance to nine percent and seeks to raise the stake to 10 percent. This is coming after some days it announced the acquisition of four percent of the insurance company.The latest acquisition puts it within a distance of its target.

Vanguard gathered that while the initial 130 million shares sold at  ¦ 4 each, representing a premium of 40.35 percent against the closing share price of  ¦ 2.85, the new shares were acquired at a lower value.

“There is no better option in the market from the perspective of effective leadership, strategic opportunities and reforms for growth in the industry, broad share holding base that engenders good corporate governance, and a network of current and potential shareholders for enhanced business development,” Eaton Acquisitions’ Managing Director, Olaleye Adeyinka, said.

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