Staco Insurance Plc sets to improve market share with new Investors

Three new core investors have emerged at Staco Insurance Plc after the insurance company completed a N1.6 billion special private placement.

The three investors, that collectively control about 34.2 per cent equity stake, are Imperial Assets Managers Limited, Electron Energy and Ventry Development Limited.

The latest audit and shareholding analysis of the company showed significant changes in the shareholding structure of the company after the private placement, with the previous majority shareholders now holding less stakes.

The report for the period ended December 31, 2016 showed that Imperial Assets Managers Limited now holds the largest equity stake of 14.99 per cent. Electron Energy followed with 10.71 per cent equity stake while Ventry Development holds 8.56 per cent.

Seaforce Investment Limited, which hitherto held the largest majority stake of 12.5 per cent, had its equity stake reduced to the fourth position with 8.18 per cent. Mr Sakiru Oyefeso, who had held the second largest stake of 8.5 per cent, now holds fifth largest equity stake of 5.04 per cent. The general shareholdings by Nigerians and associations also reduced from 72.5 per cent to 52.52 per cent.

Staco had sold 3.2 billion ordinary shares of 50 kobo each at par value in a special placement of 4.0 billion ordinary shares of 50 kobo each at the nominal value of 50 kobo. The company had aimed at raising N2 billion. It, however, raised N1.6 billion from the three new core investors.

A breakdown of the shareholdings indicated that Imperial Assets purchased 1.4 billion ordinary shares while Electron Energy and Ventry Development acquired 1.0 billion ordinary shares and 800 million ordinary shares respectively.

The addition of the new ordinary shares increased Staco’s issued share capital from 6.141 billion ordinary shares to 9.34 billion ordinary shares.

The Nation’s check indicated that the new single largest shareholder, Imperial Assets Managers, was incorporated in Nigeria on October 19, 2006 as a private limited liability company. It began operations on September 3, 2007.  Imperial is a member of the Nigerian Stock Exchange (NSE) and it is licensed by the NSE and Securities & Exchange Commission (SEC) as a stockbroking and financial advisory company.

Staco Insurance emerged in July 1994 as a result of discreet acquisition and restructuring carried out on Alpha Insurance Plc, which had been incorporated in Nigeria in 1991 and subsequently licensed to transact all classes of insurance business in October 1994. It commenced general insurance business and special risks under the new name in October, 1994.

 

Source: The Nation