By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Washington based private-equity firm, Emerging Capital Partners is set to divest its stake in Nigeria’s reinsurance company, Continental Reinsurance Plc.
This is contained in a notice to the Nigerian Stock Exchange (NSE) by Continental Re and made available to InvestAdvocate in Lagos Nigeria.
According to the notice, Africa’s Fund II the buyout firm is considering the sale of C-Re Holding Limited, which owns about 50.6 percent of the reinsurance firm, Continental Re.
In 2007, Emerging Capital bought 30 percent stake in Continental Re worth $25.8 million. The Washington private-equity firm’s 30 percent stake is considered to be a majority stake in Continental Re.
Shares of Continental Re at the close of business on Wednesday at the Nigerian bourse shows that the reinsurer’s shares fell 4.2 percent to close at N1.12 from N1.17 recorded the previously.
The Reinsurance company on Monday said it has registered a subsidiary company following the license granted it to open a subsidiary in Gaborone, Botswana.
According to the reinsurer, the new company will operate and be known as Continental Reinsurance Company Limited, Gaborone, Botswana.
Continental Re owns 60 percent of the shares of the new company.
The notice affirmed that with the new company, Continental Reinsurance Company Limited will be able to serve all the countries existing in the South of Africa and the African Indian Ocean Islands including Angola, Mozambique, Botswana, Namibia, Lesotho, South Africa, Madagascar, Swaziland, Malawi, Zambia, Mauritius and Zimbabwe in line with its strategic direction.
‘’This is expected to significantly boost premium income and profit of Continental Reinsurance Plc,’’ the notice said.
