FBN Insurance Limited, a subsidiary of FBN Holdings Plc, has completed the acquisition of Oasis Insurance Plc.
While FBN Insurance had initially acquired 71.2 per cent equity interest in Oasis Insurance through a block divestment in February 2014, the company subsequently made a mandatory takeover bid for the remaining 28.8 percent equity interest in Oasis Insurance since Oasis is listed on the Nigerian Stock Exchange (NSE). This is in accordance with Rules of the Securities & Exchange Commission.
By the close of the takeover bid on July 31, 2014, FBN Insurance received a total of 1,289,493,953 ordinary shares bringing its shareholding in Oasis Insurance to approximately 91.1 per cent.
Thereafter, FBN Insurance elected to exercise its rights under Section 146(2) of the Investments and Securities Act to compulsorily acquire shares belonging to the minority shareholders having crossed the 90 per cent threshold.
At the end of the 20-day statutory notice period, FBN Insurance increased its holdings by an additional 22,603,617 shares bringing its holdings in Oasis Insurance to approximately 91.4 per cent.
The company thereafter transferred the sum of N310,649,730 to FBN Registrars (as consideration for the outstanding 560,808,895 shares or 8.6 per cent) to keep in trust for shareholders who are yet to tender their share certificates.
Consequently, FBN Insurance now holds 100 per cent equity interest in Oasis Insurance. Thus, Oasis Insurance applied to the NSE that it should be delisted from the exchange.
The NSE has now delisted Oasis Insurance from its daily official list.
The acquisition would enable the FBN Holdings to deepen its insurance business as FBN Life seeks to harness Oasis Insurance’s relative strengths, thereby creating synergies for the development of the insurance business.
Also, Oasis Insurance is expected to leverage FBN Holdings’ wide network, including the international spread of its flags.
Speaking on the acquisition, the Group Chief Executive Officer, FBN Holdings, Bello Maccido, noted that the group would leverage on its acquisitions to consolidate its performance.