VFD Group and other key stakeholders have sold a significant block of their stake in NEM Insurance Plc.
According to VFD, a combined block of 1.6 billion ordinary shares of NEM Insurance Plc, representing about 30 percent of the Insurance Company’s issued share capital, was sold to new shareholders, sponsored by the Directors of the insurance company.
VFD Group revealed that the decision to exit the Insurance Company was reached following an inconclusive discussion with the management of the company on modalities for working together in pursuing its vision.
“We have had extensive discussions with the Management and Board of NEM Insurance Plc in the last couple of months over our interest in working with the team, to unlock the latent value we see in them. However, as we could not agree on the modalities for working together in pursuing this vision, we recently reached an amicable understanding and have thus decided to exit our investment in this great company”
In a related development, VFD Group has also announced the successful completion of the capital raising exercise it embarked on in December 2018.
The company revealed that it raised N2.78billion from rights issuance and private placements against the original N2billion target. The offer which opened on December 3, 2018, had Kairos Capital Limited acting as the financial adviser, and closed on December 31, 2018.
The new capital drive will enable the Group to pursue its desire to establish a presence in every key sector of the financial services industry, including banking.
It would be recalled that Group Managing Director of the firm, Nonso Okpala had during the firm’s Annual General Meeting hinted on the plans by the group to acquire a national bank license this year. He also revealed plans to convert to a Public Limited Liability Company.
VFD Group was incorporated on 7th July 2009 and commenced business operations in 2011. The company’s subsidiaries include VFD Microfinance Bank, Anchoria Asset Management, and Germaine Auto Center.
N.E.M. Insurance Plc is a major player in the insurance industry providing both general and non-life insurance cover. Its shares are currently trading at N1. 91 on the floor of the stock exchange, and it is down 29 percent year to date.
