The boards of SA Insurance Plc and SA Life Assurance Limited have secured the approval of the companies’ shareholders to go ahead with their merger plan.
SA Insurance has also secured a “no objection order” of the industry regulator, the National Insurance Commission (NAICOM) for the merger.
This was the major fallout of the separate court-ordered meetings, which the two companies convened recently in Lagos where their respective shareholders voted in favour of the merger plan.
At the separate meetings, Mr. Bode Akinboye, Chievf Executive Officer, SA Insurance Plc and Mr. Bolaji Oladipo, Managing Director, SA Life Assurance Limited, respectively explained the strategic derivable values from the merger to the shareholders, noting that joint strength from the process will ensure a much stronger performance and returns to the companies’ owners.
According to Akinboye, the merger plan was deliberate and strategic decision by the boards of both companies to form a frontline composite insurance company which will play a leading business role in the nation’s insurance sector with an ultimate goal of making the company a most preferred place to invest in.
He further told the owners of the company that the corporate action was being taken with a focus on delivering superior returns to them, providing much higher level of satisfactory service to the company’s clients and to save cost of operations.
On his part, Oladipo assured SA Life’s shareholders that “the composite company to emerge will continue to build on the success of the transaction in the months to come, providing more innovative products and delivering on its promises to clients,” noting that “with the combined professional and result-oriented workforce of the two companies involved, the composite company was sure of achieving its set merger goals.”
While lending his voice to the need for the merger during the court-ordered meeting convened by SA Insurance Plc, Timothy Olufemi, President, Renaisssance Shareholders’ Association, told his fellow shareholders that the move by the board was commendable and timely, noting that going by the prevailing difficult conditions under which the nation’s insurance companies have continued to operate, the best alternative to ensuring shareholders have better values for their investments was the merger option.
He urged the board to further look at dropping off any unprofitable investment and products and concentrate instead on what had formed the two companies’ areas of advantage with a view to reaping the effect of the merger decision.
The merger issue was later put to an electronic vote moderated by Sefton Fross Law firm in the presence of representatives of the relevant regulators with the result indicating shareholders’ full approval for the merger scheme.
It could be recalled that to give the merger plan the necessary regulatory backing, the management of SA Insurance had much earlier applied for and secured a “no objection consent” from its regulator, the National Insurance Commission, NAICOM and in line with market procedures and pursuant to Rule 228 (ii) of the Investment and Securities Act 1999, the Management had also notified the Securities and Exchange Commission.