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NEM Insurance buys stake from VFD group

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There are new reports that NEM insurance  has bought stake from VFD Group, a financial services firm, after discussions with the board of the insurance firm about its vision broke down.

The tradeoff saw VFD selling a combined block of one billion, six hundred million ordinary shares of the insurance firm, representing 30 percent of the issued capitals of NEM Insurance to new shareholders. The trade happened at the end of 2018 and was closed at a significant premium to quoted price on the Nigerian Stock Exchange .

VFD made it known that it raised a whopping N2.78 billion from rights issuance and private placements in December last year.The company also said that it initially planned to raise N2 billion, which shows 39 per cent oversubscription.

Meanwhile, a spokesperson for the firm, while commenting on the issue, said the oversubscription shows the confidence that existing and new shareholders have in VFD Group. VFD said it will establish its presence in every sector of the financial services industry, including banking with the new fund and disclosed its plans to convert to a public limited liability company.

Nigerians, in the past few months, have seen some firms folding up due to various reasons attributed to the economy.

Edited by Ruth Olatunde

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