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The Nigerian Stock Exchange (NSE) has placed UNIC Insurance Plc on full suspension, following approval of the scheme of arrangement that will lead to a restructuring of the insurance company under an investment holding company.
Full suspension disallows both trading and price movement on a particular stock unlike technical suspension which allows trading without price movement. The NSE stated that the full suspension was in compliance with the process required for the approved scheme of arrangement between UNIC Insurance and shareholders of the insurance company.
Already, the NSE has approved the rearrangement of UNIC Insurance under a new core investor and shareholding structure. The restructuring will allow the ailing insurance company to access capital through a new core investor.
The scheme of arrangement included the plan by South Africa’s Liberty Holdings to acquire 75 per cent majority equity stake in Unic Insurance Plc for 160 million Rands, about $12 million and an equivalent of N3.72 billion.
