Continental Re Delisted From Nigeria Bourse

BY AGENCY REPORTER—- Following an application by the company to delist after the conclusion of a scheme of arrangement that transferred Continental Reinsurance as a wholly-owned subsidiary to CRe African Investments, the Nigerian Stock Exchange (NSE) has delisted Continental Reinsurance from bourse
Continental Re thus reverts to a private limited liability company as the foreign core investor CRe Investments acquired all the shares of Continental Reinsurance.
The board said CRe Investments undertook the buyout in order to initiate a much needed restructuring exercise for Continental Reinsurance, with a view to consolidating its operations and repositioning it for enhanced competitiveness in the global insurance market.
A Federal High Court in Lagos approved the restructuring arrangement of Continental Re. This followed the approval of the company’s shareholders at a court ordered meeting held in the last quarter of last year.
The reinsurer’s board had informed shareholders that in order for the company to favourably compete in the global reinsurance market, the company had to aim higher to secure ratings that would bring more recognition and profitability.
After the court’s approval of the arrangement, the group managing director of the company, Dr Olufemi Oyetunji, stated that the restructuring is more about repositioning and achieving the best for the company. He affirmed that the reorganisation has nothing to do with the recapitalisation exercise going on in Nigeria because Continental Re commenced its restructuring process before the new capital requirements for insurers and reinsurers were announced.
CRe Investments had in 2018 launched its bid to acquire all outstanding ordinary shares of Continental Re, offering direct cash payment or shares exchange.