Thursday, 3 July 2014

FBN Insurance to launch takeover bid for Oasis

FBN Insurance will launch a bid next week to buy out the 28.8 percent minority stake in Oasis Insurance that it does not already own, in a deal valued at N1.03 billion ($6.34 million).
FBN Insurance, jointly owned by Nigeria’s FBN Holdings (65 %)  and South Africa’s Sanlam (35%), acquired a 71.2 percent stake in the motor and fire insurer in February.
It will offer
N0.55 per share to buy the remaining 1.87 billion shares, the company said on Thursday.
The buy-out process opens on July 10 and will last for three weeks, after which FBN Insurance intends to delist Oasis from the Nigerian Stock Exchange (NSE).
Shares in Oasis were trading at N0.50 on Thursday, giving the company a market capitalisation of N4 billion.
Sanlam has said FBN Insurance’s acquisition of the 71.2 percent Oasis stake gave it an entry point into the general insurance sector in Nigeria, Africa’s most populous nation.

BusinessDay

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