Investment firm, Eaton, increases stake in NEM Insurance, eyes board position

Eaton Acquisitions Limited, an investment company has increased its stake in NEM Insurance to 9 percent, days after it announced the acquisition of 4 percent of the insurance company, business a.m. has learnt.

Olaleye Adeyinka, Eaton Acquisitions’ managing director while expressing confidence in the ability of current NEM’s leadership, said his company is desirous of gaining board representation in view of a dominant shareholding stake in the company.

An initial 130 million shares were sold at N4 each, representing a premium of 40.35 percent against closing share price of N2.85, but the new shares were acquired at a lower value.

Eaton is seeking to acquire 10 percent of the insurance company. The latest acquisition puts it within a one percent distance of its target.

According to the investors they also increased their stake in the company because it offers strategic opportunities and growth.

“There is no better option in the market from the perspective of effective leadership, strategic opportunities and reforms for growth in the industry, broad sharing holding base that engenders good corporate governance, and a network of current and potential shareholders for enhanced business development,” said Adeyinka.

“We can’t say much about the strategic vision of the company yet as it is in the purview of management and the board, but we have unalloyed confidence in both organs of the company’s governance,” he further noted.

The Eaton boss also explained that the investment firm intend to acquire more shares until they “meet the mandate of our Board to acquire 10 percent of the company’s shares.”