Business
Eaton to invest in NEM, buys 130m shares
Eaton Acquisitions Limited on Monday said it had completed the purchase of 130 million shares of NEM Insurance Plc.
The cross deal sees Eaton, which was seeking to acquire 10 per cent, buy 4 per cent stake in NEM Insurance’s shares.
The trade was negotiated between Stanbic IBTC stockbrokers, the seller and TRW Stockbrokers, the buyer.
In the stated trade, 130 million shares of NEM Insurance were sold at ₦4 representing a premium of 40.35 percent against the closing share price of ₦2.85 as of Friday, August 17, 2018.
The 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.”
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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 percent 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.
While explaining the premium the company paid on the purchase, Adeyinka added that “we are long-term investors and believe that our confidence in the potentials and valuation of NEM is justified.”
Eaton Acquisitions Limited is an investment company that focuses on identifying listed companies with high growth potential and investing.
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