- New Investor Acquires 2.5% Equity in NEM Insurance
A new investor struck a cross deal to acquire 2.46 per cent equity stake in NEM Insurance Plc.
A total of 130 million shares of NEM Insurance were transferred in an off-market trade at N4 per share. The deal was consummated through the negotiated cross deal window of the Nigerian Stock Exchange (NSE) on August 17, 2018.
The transaction represents 2.46 per cent of NEM Insurance’s total issued shares of 5.28 billion ordinary shares of 50 kobo each.
As off-market, negotiated cross deals, it means that the deals were not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the NSE.
The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.
