The Nigerian Exchange Limited (NGX) has imposed a complete trading suspension on the shares of Consolidated Hallmark Insurance Plc in preparation for its delisting and subsequent listing as a holding company. This action is outlined in the weekly report of the NGX, as reported by InfoStride News, informing trading license holders and the public about the suspension of shares in Consolidated Hallmark Insurance Plc.
The NGX emphasizes the necessity of this suspension to halt trading in the company’s shares, facilitating the reconciliation of its books with the Central Securities Clearing System (CSCS) as part of the delisting process for Consolidated Hallmark Insurance Plc and the listing of Consolidated Hallmark Holdings Plc. The suspension is deemed crucial for determining eligible shareholders for consideration in this corporate transition.
In a significant development, shareholders of Consolidated Hallmark Insurance (CHI) Plc had previously granted approval for the proposed Holding Company (HoldCo) structure for CHI Plc and all associated schemes of arrangement under Section 715 of the Companies and Allied Matters Act, 2020.
This approval, secured during the company’s Court Ordered Meeting held in Lagos—both virtually and physically—entailed the transfer of 10,840,000,000 ordinary shares of 50k each from CHI Plc to Consolidated Hallmark Holdings Plc. In exchange, shareholders would receive 10.84 billion ordinary shares of 50k each in the share capital of the HoldCo, allocated proportionally based on their existing shareholding in CHI Plc.
Addressing shareholders during the meeting, Mr. Obinna Ekezie, the Chairman of the company, explained that the HoldCo structure was designed to enhance Consolidated Hallmark’s valuation by enabling each subsidiary to operate as a focused business entity. Ekezie highlighted the benefits of this structure, emphasizing that it ensures subsidiaries operate under distinct regulatory requirements, mitigating risks and creating a liability tax shield by segregating operating companies and their assets into separate entities.
Moreover, Ekezie pointed out that the HoldCo structure positions Consolidated Hallmark to pursue additional value-accretive opportunities that may arise in the future. He expressed the company’s intention to take the necessary steps to align itself for future opportunities across the insurance value chain.
In conclusion, Ekezie characterized the restructure as marking a new chapter for both the company and the Group, enabling entities to be deliberate in their next phase of growth and impact on the Nigerian insurance industry. This strategic move is anticipated to set the stage for Consolidated Hallmark’s continued evolution and relevance in the dynamic landscape of the insurance sector.
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