By Peter Egwuatu
AHEAD of a proposed court ordered meeting to ratify move to sell outstanding and issued shares of Continental Reinsurance Plc, some shareholders of the company have kicked against plan by its Board of Directors to buyout the retail investors.
In an exclusive chat with Vanguard, the National Chairman of Constance Shareholders Association of Nigeria, Mr. Shehu Mallam Mikail who spoke for its members said: “We are not happy with the plan by the Board of the company to buyout the retail investors. We have been with this company for several years and if the performance of the company is dwindling then other options rather than buyout should be considered. Why must retail investor bear the brunt of mismanagement? I think the regulators should look into this issue and intervene to protect the retail investors.”
Continuing, he said: “We the retail shareholders do not see why this action should be taken. The price it has even proposed to buy the shares from us is even small and not encouraging considering the interest we have put in the company and with the hope of reaping good dividend and share appreciation in future. We feel that the Board’s intention is to delist from the Nigerian Stock Exchange, which we have continuously resist. We are not going to be part of this exercise and we will make our case known before the planned court ordered meeting.
Meanwhile, it will be recalled that recently the Board of Continental Reinsurance stated that it has received an offer from CRe African Investments to acquire all its outstanding and issued shares.
The Company Secretary, Continental Reinsurance, Abimbola Falana, had in a statement said the company was making the offer in order to initiate a much-needed restructuring exercise with a view to consolidating its operations and repositioning it for enhanced competitiveness in the global insurance market.