By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)- FBN Life Assurance Limited has completed the acquisition of 71.2 percent stake in insurance firm Oasis Insurance Plc.
This is contained in an announcement Monday from FBN Holdings Plc the parent company of FBN Life Assurance to the Nigerian stock exchange and made available to InvestAdvocate in Lagos Nigeria.
According to FBNH, the 71.2 percent stake represents 4,630,595,326 ordinary shares of 50kobo each of the total issued ordinary share capital of Oasis Insurance.
FBNH affirmed that the acquisition was effected through the execution of a share sale and purchase agreement with the majority shareholders of Oasis following receipt of approvals of the board of directors of FBN Life, FBN Holdings Plc and the selling shareholders as well as the requisite regulatory approvals from the national insurance commission, securities & exchange commission and the Nigerian stock exchange.
‘’Following this majority acquisition, FBN Life is 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 and rule 445 of the securities and exchange commission’s rules and regulations,’’ FBNH said.
The holding company further affirmed that the acquisition is in line FBN Life’s organic and inorganic growth strategy of building a leading insurance franchise in Nigeria and Oasis provides it a platform to diversify its service offerings to include non-life insurance products. ‘’More importantly, the acquisition allows for both companies to leverage their relative strengths, thereby creating synergies for the benefit of their respective stakeholders,’’ FBNH said.