FBN Life Assurance has reportedly reached an arrangement to acquire minority shareholdings in Oasis Insurance, for an undisclosed sum.
An insurance subsidiary of FBN Holdings, FBN Life Assurance has already purchased 71.2% equity interest in the Nigerian Stock Exchange-listed general insurance company, Oasis Insurance, in February 2014.
After this purchase in Oasis, FBN Life was required to make a mandatory take-over bid to the remaining shareholders of Oasis insurance in line with section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC's Rules and Regulations.
Following completion of the minority stake comprising 1.87 billion ordinary shares, Oasis Insurance will become a wholly-owned subsidiary of FBN, as reported by The Nation.
The takeover of Oasis Insurance' stake will apply to shareholders in the book of Oasis Insurance as at the close of business on 20 June, whereas FBN Assurance will open application list or the takeover on 23 June and close same on 14 July 2014.
FBN Holdings noted that the proposed transaction will enable it to strengthen its insurance business using Oasis Insurance's relative strengths and by building synergies for the development of the insurance business.
In addition, Oasis Insurance will use FBN Holdings' wide network, including the international spread of its flagship-First Bank of Nigeria Limited, to boost its coverage of the Nigerian general insurance market through cross-selling of products on First Bank's network.
Oasis Insurance mainly focuses on motor and fire insurance and also offers general accident and oil/gas insurance, marine, engineering, bond and aviation insurance.
Source IBR
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