NAICOM warns against sale of International Energy Insurance’s asset

The National Insurance Commission (NAICOM) has advised the interim management of the International Energy Insurance (IEI) Plc to suspend the proposed sale of the company’s main equity stake in IEI Anchor Pensions Limited.

The interim management had planned to sell IEI’s investment in IEI Anchor Pensions Limited, quoting that the operational guideline of the NAICOM prohibits investment of greater than 25 per cent of proceeds from a private placement or public offer in a non-insurance asset.

Though, the Commission, said to have directed the interim management, which it appointed after sacking the previous management of IEI, to stand down the disposal process.

Naicom had in 2015 intervened in the governance of IEI and appointed an interim management board (IMB) effective May 18, 2015. The IMB is chaired by Muhammad Ahmad, founding director general of National Pension Commission (Pencom) and it included Ms. Daisy Ekineh and Mrs. Bridget Akintola.

The management of IEI confirmed the suspension of the divestment process.

IEI had struggled from one crisis to another and remained under the danger of compulsory delisting at the Nigerian Stock Exchange (NSE).

IEI’s share price has fallen to its nominal value of 50 kobo, underlining the steep decline since its share restructuring in 2013. In 2013, IEI had restructured its previous outstanding shares of 6.42 billion ordinary shares of 50 kobo each to 1.284 billion ordinary shares of 50 kobo each. The post-consolidation shares were listed at N2.50 per share, making IEI the then highest-priced stock in the insurance sector.

The Nation had reported that the national council of the NSE had approved delisting of 17 companies. A total of 18 companies have been slated for delisting including 17 companies that have been earmarked for compulsory delisting and a company that had opted for voluntary delisting over its inability to comply with listing requirements.

The Nation’s check had indicated that the delisting will shave of more than N33 billion from the market capitalisation of the Exchange, implying direct loss of similar value to investors who may not be able to unlock such value in the absence of a regular stock exchange.

With the recent delisting of eight companies, other companies currently on final delisting process included IEI, Navitus Energy Plc, formerly Union Ventures and Petroleum Plc; Costain (West Africa) Plc, Lennards (Nigeria) Plc, Deap Capital Management and Trust Plc, Evans Medical Plc, P.S Mandrides and Company Plc, Nigerian Ropes Plc and Premier Breweries Plc.