News Column

Private Equity Firm to Sell 50 Percent Stake in Continental RE

July 17, 2014

Continental Reinsurance Plc has notified the Nigerian Stock Exchange (NSE) that a private equity firm, Emerging Capital Partners, has concluded plans to sell its 50.6 per cent stake in the company.

Emerging Capital Partners is the majority shareholder in Continental Reinsurance, which has operations in Cameroon, Ivory Coast, Kenya, Nigeria and Tunisia.

The private equity firm first invested $25.8 million in the insurer in 2007 for a 30 per cent stake, which helped increase its underwriting capacity to $80 million from $15 million.

Continental Reinsurance, Nigeria's second-largest insurance firm, covers life and non-life business, did not give any reason for the sale.

Insurance companies in Africa's largest economy are betting on growing premiums as Nigeria develops its infrastructure and a consumer class that would demand protection from risk.

Nigeria'sFBN Insurance launched a bid this month to buy out the 28.8 per cent minority stake in Oasis Insurance Plc that it does not already own in a deal valued at N1.03 billion.

Meanwhile, the Nigerian stock market continued its positive performance yesterday as major market indicators closed firmer.

At the close of business yesterday, the benchmark index appreciated by 0.14 per cent in to close at 43,030.27 (this brings the year-to-date appreciation to 4.12 per cent) relative to the previous day trading session closing figure of 42,971.59.

Also, the turnover by volume of transaction increased by 25.98 per cent relative to the previous day trading session closing figure. In the same vein, the value of transaction increased by 1.91 per cent.

Major transaction volume was driven by activities in the, banking, oil & gas, insurance and conglomerates sector led by Unity Bank Plc, TRANSCORPPlc, Skye Bank Plc, FBN Holdings Plc and Oando Plc in that order. Others include WAPIC Insurance Plc, Access Bank Plc, UBA Plc, Guaranty Trust Bank Plc and NASCON Plc.

At the end of yesterday's trading, 22 stocks appreciated in value (previous day 33), 26 stocks depreciated in value (previous day 27) while 71 stocks remain unchanged making a total of 119 stocks that were actively transacted in yesterday's trading. .

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: AllAfrica

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