By Peter Egwuatu

Shareholders of Allianz Nigeria Insurance have kicked against the proposed delisting of its Company, just as they rejected the sum of N1.50 per share being proposed as pay off to holders of its fully paid ordinary shares, preparatory to delisting from NASD  OTC Securities  Exchange.

One of the prominent shareholders and founder of Independent Shareholders Association of Nigeria (ISAN) Sir, Sunny  Nwosu  in an exclusive  chat said, “We are demanding  N2.50 per share as pay off  which we considered is fair enough to both parties as we are not happy for planned delisting.”

He stressed that the N1.50 being proposed as pay off by core investor is not commensurate with the value of their investments.

Nwosu said, they are ready to use every available means at their disposal including legal action to halt the court ordered meeting between the shareholders and the core investor  scheduled to hold on September  4, 2020, if Allianz Insurance Nigeria insists on going ahead with the payment of N1.50 per share.

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The Federal High Court  Sitting in Lagos had in a Suit No.FHC/L/CS/454/2020 dated June 4, 2020 directed that a meeting of shareholders with the core investor be convened for  the purpose of approving the scheme of arrangement between the company and the  holders of its fully paid ordinary shares .

Also scheduled to be deliberated at the proposed meeting in a special resolution is  the transfer of shares from the shareholders to  Societe Franciere Europeenne B.V. the core shareholder. It is also expected that as consideration for the transfer of the shares, each shareholder shall receive the sum of N1.50 per share , and that  upon the scheme becoming effective, the ordinary shares of the company be delisted from the NASD OTC Securities Exchange.

In a nutshell, if the scheme is successfully implemented as planned, the entire issued share capital of Allianz Nigeria will be transferred to the core investor, the Company will then be delisted and re-registered as a private limited liability company.

However, this may not materialize as the unhappy shareholders have disclosed that they are planning to contact their legal advisers on the issue, so as  to stop the proposed meeting if the company is not in favour of their  demands.