Emmanuel OchayiThe Nigerian Exchange Limited (NGX) has taken a decisive step by suspending the trading of Consolidated Hallmark Insurance shares.
This suspension, as revealed in the NGX weekly report obtained by is a precursor to the company’s delisting and subsequent listing as a holding company.
Explaining the rationale behind this suspension, NGX highlighted the importance of halting share trading to facilitate a seamless transition for the company. The primary goal is to allow Consolidated Hallmark Insurance to reconcile its financial records with the Central Securities Clearing System (CSCS) in preparation for the impending delisting and the subsequent listing of Consolidated Hallmark Holdings Plc.
Furthermore, the suspension is instrumental in determining which shareholders will qualify for consideration within this transition process.
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This move comes subsequent to the approval garnered from Consolidated Hallmark Insurance shareholders last year for the proposed Holding Company (HoldCo) structure and all related schemes of arrangement under Section 715 of the Companies and Allied Matters Act, 2020.
During the company’s Court Ordered Meeting, both virtually and physically held in Lagos, shareholders consented to the transfer of 10,840,000,000 ordinary shares of 50k each from Consolidated Hallmark Insurance Plc to Consolidated Hallmark Holdings Plc.
This transfer is to be reciprocated with the allotment of an equivalent number of ordinary shares in the share capital of the Holdco.
Mr. Obinna Ekezie, the Chairman of Consolidated Hallmark Insurance, emphasized the advantages of this restructuring. He outlined that the HoldCo structure would enhance the company’s valuation by enabling focused operations within each subsidiary, thereby mitigating risks that could impact the entire business.
Ekezie also stressed that this restructuring would offer a shield against liabilities by housing operating companies and assets in distinct entities.
Moreover, he highlighted the growth opportunities this transition would unlock, expressing the company’s intent to leverage this restructuring to explore and capitalize on value-accretive opportunities across the insurance value chain.
“This restructure signifies a new phase for the company and the Group. It positions us strategically to pursue growth opportunities and make a more substantial impact on the Nigerian Insurance industry,” remarked Ekezie, articulating the transformative potential of this transition.
As the transition progresses, shareholders and the investing public await further developments regarding the delisting and listing processes, anticipating the future prospects of Consolidated Hallmark Holdings Plc in Nigeria’s insurance landscape.
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