The planned shareholders’ meeting of Coronation Insurance Plc, which was ordered by the court and aimed at discussing the proposed delisting of the company from the Nigeria Exchange (NGX), has been indefinitely postponed, according to a statement from the company.
In an announcement signed by Company Secretary Mary Agha, Coronation Insurance initially scheduled the meeting for August 24, 2023, to consider and potentially approve a Scheme of Arrangement proposed between the company and its fully paid ordinary shares holders. This Scheme was ordered by the Federal High Court in a decision dated June 26, 2023.
Additionally, the statement disclosed that the company had approved a payment of 65 Kobo per share to shareholders, a move that had also been sanctioned by the Securities & Exchange Commission (SEC). This payment was part of the planned delisting process.
However, despite the court order, the approval from SEC, and the shareholder’s agreement, the meeting has been postponed due to unforeseen circumstances.
The backstory to this situation involves the Federal High Court in Lagos ordering a shareholders’ meeting for Coronation Insurance to consider the company’s delisting from NGX. The court also appointed Mr. Mutiu Sunmonu, the Chairman of the Company’s Board of Directors, to preside over the meeting and report the results to the court.
In an earlier development, Coronation Insurance Plc had received an offer from Coronation Capital (Mauritius) Limited to acquire the company’s shares at a rate of 65 Kobo per share, with the intention to subsequently delist from NGX. The offer price represented a 30% premium over the company’s last traded price of 50 Kobo on August 12, 2021.
Opinion: The indefinite postponement of the shareholders’ meeting by Coronation Insurance raises questions about the clarity of the company’s plans regarding its delisting from the Nigeria Exchange. Delisting is a significant decision that impacts both shareholders and the company’s future. Such delays can lead to uncertainty and confusion among investors, which may have implications for market trust and the company’s overall reputation. It’s crucial for companies to communicate their intentions clearly and efficiently, especially when dealing with legal and regulatory matters that can influence their market position.