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WAPIC Insurance, Intercontinental Properties Merger Approved

21 Dec 2012

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Chairman of WAPIC Insurance Plc, Mr. Aigboje Aig-Imoukhuede

Eromosele Abiodun

The on-going restructuring of Access Bank Plc, in compliance with the Central Bank of Nigeria’s (CBN’s) regulation on the scope of banking activities in the country received a boost Thursday when the shareholders of two of its subsidiaries approved their business combination.

Speaking at a court-ordered meeting in respect of the merger held in Lagos, Chairman of WAPIC Insurance Plc, Mr. Aigboje Aig-Imoukhuede, stated that the combination of the operations of WAPIC and Intercontinental Properties will result in WAPIC being the surviving entity.

He added that the board of WAPIC believed that the merger would provide considerable benefits and opportunities to shareholders and other key stakeholders of the company.

The merger, he said, would significantly increase WAPIC Insurance’s capital base, thereby enabling the company to grow its premium income and take on sectors where minimum capital requirements are high.

“With cash constituting over 75 per cent of the net assets of Intercontinental Properties, the enlarge WAPIC Insurance will have a larger and more liquid balance sheet. The merger will provide an opportunity to leverage the real estate investment expertise of Intercontinental Properties. The existing asset management capacity of WAPIC Insurance can be deployed towards enhancing the assets of Intercontinental Properties. The merger will provide additional revenue streams with no duplication and higher property efficiency,” he said.

Speaking at a meeting, the President, Renaissance Shareholders Association of Nigeria (RSAN), Mr. OlufemiTimothy, commended the management on the conversion ratio of two for one ordinary shares given to shareholders. He added that the balance sheet of WAPIC would be robust and strong enough to face challenges, if intercontinental properties asset was converted to cash and plough back into WAPIC.

Tags: Business, Nigeria, Featured, WAPIC Insurance

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