The Nigerian Stock Exchange (NSE) on Friday January 25, 2019 delisted the entire issued share capital of Great Nigeria Insurance Plc (GNI) from the Daily Official List of The Exchange.
The company secretary said in a December 21, 2018 public notice at the Nigerian Stock Exchange and signed by Olajumoke Bakare of First Almond Attorneys that “Over the last 5 years, there is little or no trading activity on the shares held by the minority shareholders.”
Great Nigeria Insurance Plc said it has not benefitted from listing on the Exchange “as the company’s shares continue to trade at a significant discount to the intrinsic value. Moreover, the Company is bearing unnecessary cost in complying with its listing obligations.”
“There has also been a considerable fall in trading volumes over the last twelve (12) months with an average daily volume of circa 1,200 units during the period March 2017 to March 2018. Shareholders are not benefiting from the continued listing as they are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholding,” the company had noted.
The NSE said in a January 25 notice signed by Godstime Iwenekhai, Head, Listings Regulation Department that delisting of Great Nigeria Insurance follows the NSE market bulletin of December 13, 2018 where it notified Dealing Members of the approval of the application filed by MBC Securities Limited on behalf of Great Nigeria Insurance Plc for the voluntary delisting of the entire share capital of GNI.
The Company provided an Exit Opportunity to minority shareholders who did not want to remain in an unlisted company. The consideration that accrued to shareholders of GNI Plc that elected to accept the Exit Consideration was computed as at October 24, 2018 (the Collation Date). The cash consideration settled by way of electronic transfer to the respective bank accounts of shareholders was expected to be completed on or before December 31, 2018.
GNI Plc had opened an escrow account with GTL Registrars and Data Solutions Limited and provided sufficient funds to shareholders who as at October 24, 2018 accepted the Exit Consideration of 50kobo per share based on the highest price of 50kobo at which GNI Plc traded in 6 months preceding the date of the annual general meeting (AGM)/ Extra-Ordinary General Meeting (EGM) where the resolution to de-list was passed.
GNI Plc is one of Nigeria’s foremost Insurance firms with a composite license that allows it to underwrite Life and General insurance business. The Company started its operations in 1960, and has accumulated over 55 years of insurance underwriting, financial advisory and real estate investments.
Iheanyi Nwachukwu
