The Nigerian Stock Exchange (NSE) today (September 4, 2012) announced a proposed merger between CORNERSTONE INSURANCE PLC AND LINKAGE ASSURANCE PLC
The press release by the Compliance Unit, Listings Regulation Department of the Nigerian Stock Exchange states that the two institutions have notified The Exchange of their proposal to merge the two entitities into one.
The statement further reads: “The merger will thus, result in the transfer of all assets, liabilities and undertakings, including real properties and intellectual property rights of Linkage Insurance Plc to Cornerstone Insurance Plc, and the cancellation of the issued shares of Linkage Insurance Plc.
In consideration of the transfer of all assets, liabilities and undertakings, as well as real property and intellectual property rights of Linkage Insurance Plc to Cornerstone Insurance Plc, the Shareholders of the Scheme Shares of Linkage Insurance Plc so cancelled will be entitled to 30% shareholding (approximately, 74% of the current shareholding in Linkage) of Post-Merger Cornerstone Insurance Plc.
The application for the merger is however, still under consideration.”
Cornerstone Insurance Plc was incorporated on 26th July 1991 as a private limited liability company and became a Public Limited Liability, quoted on the Nigerian Stock Exchange in 1997. The company pioneered service delivery standards in the insurance industry. It is a composite insurance company licensed by NAICOM to underwrite both Life and Non-Life Insurance
Linkage Assurance PLC, was incorporated on the 26th of March 1991 and was licensed on the 7th of October 1993 to carry on non-life insurance business. The company on the 27th of February 2007 formally merged with Central Insurance Company Limited (now dissolved but not wound up) as part of the 2007 Recapitalization and Consolidation Reforms of the National Insurance Commission (NAICOM).