The shareholders of WAPIC Insurance Plc, an arm of Access Bank Plc, have approved its merger  with Intercontinental Properties Limited.

This was in line with the ongoing restructuring of Access Bank Plc, in compliance with the Central Bank of Nigeria’s regulation on the scope of banking activities in the country.

The shareholders gave their approval at a Court Ordered Meeting in respect of the merger in Lagos on Thursday, and agreed that the business combination would result in WAPIC being the surviving entity.

Speaking during the meeting, the Chairman of WAPIC Insurance Plc, Mr. Aigboje Aig-Imoukhuede, stated that the combination of the operations of WAPIC and Intercontinental Properties would result in WAPIC emerging a stronger business concern.

He added that the board of WAPIC believed that the merger would provide considerable benefits and opportunities to shareholders and other key stakeholders of the company.

The merger, he said, would significantly increase WAPIC Insurance’s capital base, thereby enabling the company to grow its premium income.

He said,“With cash constituting over 75 per cent of the net assets of Intercontinental Properties, the enlarge WAPIC Insurance will have a larger and more liquid balance sheet. The merger will provide an opportunity to leverage on the real estate investment expertise of Intercontinental Properties.

“The existing assets management capacity of WAPIC Insurance can be deployed towards enhancing the assets of Intercontinental Properties. The merger will provide additional revenue streams with no duplication and higher property efficiency.”

He added that the combination would provide long term assets with a robust and diversified real estate portfolio with steady income stream.

Speaking on behalf of shareholders, the President, Renaissance Shareholders Association of Nigeria, Mr. Timothy Olufemi, commended the management on the conversion rate of two for one ordinary shares given to shareholders, adding that the balance sheet of WAPIC would be robust and strong enough to face challenges, if Intercontinental Properties’ assets were converted to cash and ploughed back into WAPIC.

He added that WAPIC would become a large underwriting firm noting that the firm would also be able to pay claims without default.

“It is been very good, the conversion of two to one has been rewarding to shareholders. When you look at the explanation that intercontinental properties assets would be converted into cash and put into WAPIC, you see that it is a brave idea. This will make the balance sheet of WAPIC Insurance robust to become a large underwriting company to get more value to shareholders.

Also speaking, the National Coordinator, Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, urged the company’s board to ensure that the process was favourable to the existing shareholders of WAPIC.

Source: Punch (written by Udeme Ekwere)