Eaton raises stake in NEM, buys 130 million shares
Eaton Acquisitions Limited, an investment company that focuses on identifying listed companies with high growth potential and investing, has announced the completion of the purchase of 130 million shares of NEM Insurance Plc.
The cross deal, sees Eaton, which was seeking to acquire 10%, buy 4% stake in NEM Insurance’s shares. The trade was negotiated between StanbicIBTC stockbrokers, and TRW Stockbrokers, representing the seller and the buyer respectively.
In the stated trade, 130 million shares of NEM Insurance were sold at ₦4 representing a premium of 40.35% against the closing share price of ₦2.85.Managing Director and Chief Executive Officer of Eaton, Olaleye Adeyinka, said: “Our company seeks to acquire a strategic stake in companies with compelling growth trends in the last couple of years and NEM neatly falls into this category hence our interest in the Company.”
According to analysts, NEM insurance has been the best performing company amongst other companies in the Nigerian Stock Exchange insurance index based on average growth in earnings in the past five years.
“We intend to build a substantial stake in the company as our Board has approved the purchase of up to 10% of the company’s shares.“We have had positive interactions with the management of NEM and look forward to supporting the company to continue achieving consistent stellar performance,” Adeyinka said. Adeyinka stated that “we are long-term investors and believe that our confidence in the potentials and valuation of NEM is justified,” explaining the significant premium the company paid on the purchase.
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