Custodian and Allied Insurance plc and Crusader (Nigeria) plc have secured the approval of their individual shareholders to go ahead with a merger arrangement that will bring the two entities into one, to be called Custodian and Allied plc.
The approvals, which were secured at two different Court Ordered Meetings of both companies held in Lagos mark the conclusion of the process as both firms had already secured the approvals of the different regulatory authorities, including the Securities and Exchange Commission (SEC); the National Insurance Commission (NAICOM) and the Nigerian Stock Exchange (NSE).
With completion of this process, Custodian and Allied Insurance which currently has 56.24 percent in Crusader (Nigeria) will emerge a non-operating holding company and its shareholders who had only invested in general business under Custodian and Allied Insurance plc will have interest in general insurance, life insurance, trustees, property, pensions and other subsidiaries of the post-merger entity.
In the share exchange ratio, existing shareholders of Crusader (Nigeria) plc will get eight new shares in the emerging entity (Custodian and Allied) for every 34 shares held in crusader.
Michael Ade Ojo, chairman, Custodian and Allied Insurance plc said at the Company’s Court Ordered Meeting that the Board is of the belief that through this merger, the post merger Custodian will provide significant opportunities and benefits to staff, customers, shareholders and other stakeholders.
Ojo who was represented by Wole Oshin, managing director and CEO of Custodian, said the merger would bring about enhanced revenue opportunities. “The post merger custodian will target the existing customer bases of custodian and Crusader and will utilise the expertise of each business to drive new products and brand extension across all its markets, thereby generating attractive revenues.
“The post merger Custodian will have the balance sheet size, increased scale and financial strength to drive organic growth and compete effectively in the post consolidation insurance industry. It will also be able to take up big ticket transactions and larger volumes of business, thereby increasing market share”
Again, he said there would be improved operating efficiencies as well as expanded portfolios.
Following the consolidation of exercise in the insurance industry in 2007, Crusader Insurance (Nigeria) plc transformed into a group of companies now known as Crusader (Nigeria) plc with respective interests in – Crusader General Insurance Limited; Crusader Life Insurance Limited; Crusader Trustees Limited; Crusader Sterling Pensions Limited (Associate); Crusader Properties Limited and Crusader Hotels and Apartments Limited.