Universal Insurance Plc has signed a binding N7.128 billion private placement agreement with FPNG Co-Nvest Limited as it seeks to meet the regulatory capital requirement under Nigeria’s insurance industry recapitalisation exercise.
Under the agreement, FPNG will inject N7.128 billion in fresh equity capital into Universal Insurance in exchange for additional shares.
The transaction will make FPNG the majority shareholder in Universal Insurance, with a 50.1 percent equity stake.
Universal Insurance is among the insurers that did not meet the recapitalisation requirements published by the National Insurance Commission (NAICOM).
In a market update to the Nigerian Exchange Limited (NGX), signed by the company secretary, Chinedu Onyilimba, the insurer said the transaction, once completed, would enable it to exceed the regulatory capital requirement while maintaining a robust solvency margin.
“The Company entered into a binding investment agreement with FPNG Co-Nvest Limited, under which FPNG would invest a total of N7.128 billion of equity capital via a private placement into Universal Insurance in exchange for additional shares in the Company,” Onyilimba said.
He added that the transaction would result in FPNG attaining a majority equity holding of 50.1 percent in Universal Insurance.
The company said its board and management are engaging with NAICOM and other relevant regulators on the transaction.
It said regulatory approvals would be the next critical step before the deal can be completed.
Universal Insurance said it had secured the relevant board and shareholder approvals for the transaction and remained committed to fulfilling all applicable regulatory requirements.
The insurer said it would continue to keep the NGX, shareholders and the investing public informed of material developments as the transaction progresses.
FPNG Co-Nvest Limited is an institutional investment vehicle and subsidiary of FigPoint (Fig Partners Africa). It holds substantial equity stakes in major Nigerian publicly listed companies, with a focus on the country’s capital market and financial sector.
Faridah Abdulkadiri
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