NIGERIA Stock Exchange (NSE) listed Continental Reinsurance majority shareholder Saham Finances SA has whittled down its shareholding to 51% from 100% after an investment firm focusing on the Sub-Saharan African region acquired a significant stake in the reinsurer.
Group MD of Continental Reinsurance Femi Oyetunji said Capital Alliance Private Equity IV Limited, a private equity fund sponsored by African Capital Alliance (ACA), a leading independent investment firm focusing on the Sub-Saharan African region, has taken a 49% stake in Continental-Re Holding.
The dilution is significant in that it will result in South African Sanlam which has a 30% ownership of Saham Finances also indirectly diluting its shareholding in Continental -Re and therefore its pan-African presence.
Pursuant to share transfers within Continental-Re Holding the ultimate shareholding structure of the company will comprise of indirect stakes held by Capital Alliance Private Equity IV Limited-a private equity fund sponsored by African Capital Alliance and Saham Finances SA (the insurance arm of Saham Group)
Oyetunji, said the new structure will position Continental-Re favourably to bolster its strategic objectives and strengthen what it has achieved over the past few years in terms of our pan-African foothold, expansionary plans and market positioning as the largest private pan-African reinsurer, outside of South Africa.
“This is an extremely positive move for our company and we are very pleased to have shareholders who share our determination to realise our vision for Africa,” he said.
Oyetunji said there will be no change to our strong pan-African brand or underwriting philosophy, our board will remain independent and there will be no majority shareholding for any individual organisation,”
Zimbabwe Stock Exchange-listed TA Holdings is a shareholder in Continental Re’s Botswana unit.- Fidelity Mhlanga