By Asishana John
Having obtained the necessary approvals from all relevant regulatory authorities, Law Union and Rock Insurance Limited has transited to Tangerine General Insurance Limited (“Tangerine General”).
This development follows an earlier acquisition by Verod Capital Management Limited, through the Verod Capital Growth Fund III. With the move, Tangerine General joins other associated companies under the Tangerine Financial Africa (“Tangerine”) brand of companies.
Speaking on the development, Chairman, Board of Directors, Tangerine General Insurance Limited (formerly Law Union & Rock Insurance Limited), Eric Idiahi, said: “We are excited by the continued progress in our journey towards building a sound, robust and unique financial services group. We eagerly anticipate the formal launch of the Tangerine brand in the near term and are working to realize our vision for all our stakeholders.”
Also speaking on the development, its Managing Director, Ademayowa Adeduro hinted that the foremost underwriting firm has successfully completed the acquisition deal and was set to launch out with the new corporate identity.
Adeduro who expressed excitement on the development said: “The crucial phase of our recapitalisation exercise was crossed on February 27, 2020, with the signing of Transaction Implementation Agreement (TIA) between Verod Capital Management Limited and the majority shareholders of Law Union & Rock Insurance.”
The TIA, he explained gave legal backing to Verod Capital to buy a 100 per cent stake in LUR, recapitalise the company to a minimum N10billion and also delist its share from the Nigerian Exchange through the Scheme of Arrangement.
Tangerine is a leading technology and financial services platform in Africa that consistently goes the extra mile to improve the financial security of its customers by merging deep insights and cutting-edge technology.
Today, Tangerine comprises of General and Life Insurance companies, a Pension Fund Administrator, a Microfinance Bank; and has immediate plans of entering into other closely related verticals.
All the Tangerine companies are executing a coordinated strategy that seeks to provide African consumers and corporates with a comprehensive suite of financial products and services that are aligned with the very specific needs of their day to day lives and business operations.
Tangerine provides customers with the opportunity to save, invest, protect and access credit across different channels while maintaining a consistent standard and emphasis on customer service, digitization and product customisation to ensure convenience and satisfaction.
Law Union and Rock has a long and rich operating history in Nigeria, and as a result, the brand has achieved a reverent position, particularly within the insurance sector, where it has come to stand for stability and resilience.
Chairman, Law Union and Rock Insurance, Mr Remi Babalola had, during the Court Ordered Meeting, which followed the AGM stated that the company initially explored merger discussions with other insurance firms and communicated initial recapitalisation plan to NAICOM.
He however noted that they found that the shareholders of Law Union would not maximise shareholder value if such merger discussions crystallised, which led them to seek more optimal avenues for shareholders to get better value for their investments in the company, through acquisition by Verod, using the Kanuri LUR SPV.
The chairman stated: “Following negotiations with Kanuri LUR and further advice from its advisers, the Board resolved to recommend the Proposal to the Shareholders for their kind consideration a meeting to be convened by an order of the Federal High Court.
The Board, he said, further resolved to effect the proposal by way of a Scheme of Arrangement under Section 539 of the Companies and Allied Matters Act Chapter C20, laws of the federation of Nigeria 2004 as your Board believes that same will serve the best interests of both the company and its shareholders.”
The chairman further stated that Kanuri LUR’s proposal stated its intention to acquire Law Union resulting in the company being re-registered as a private company, noting that the proposal would be implemented through Kanuri LUR and its designated nominee, who will receive the shares under the scheme upon its taking effect.
“According to the proposed Scheme Consideration, the offer represents a total value of N1.23 per share, a 129 per cent of the last traded share price of the company on February 27, 2020, at N0.95 per share, being the last business day prior to the date the execution of the TIA and announcement on the exchange, and a 208 per cent of the 60 – Traded Day weighted average share price of N0.59 per share as at February 27, 2020. Finally, with the success of the AGM and Court Ordered Meeting, it is simply a matter of weeks for Law Union to complete its recapitalisation scheme,” he noted.