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Consolidated Hallmark Insurance transforms to holding company

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All is now set for Consolidated Hallmark Insurance Plc to transform to a holding company as to reflect the company’s establishment of some subsidiary firms. Board of Consolidated Hallmark has already received the approval of its shareholders to transform the organisation to a Holding Company. The approval was given during a Court-Ordered Meeting in Lagos recently.  The holding company structure it was gathered will improve Consolidated Hallmark’s valuation by creating a structure where each subsidiary is able to operate a focused business.

Speaking on the development, chairman of the company Mr Obinna Ekezie informed  stakeholders that the restructuring would allow the insurance arm transfer the shares of its shareholders to a holding company comprising of CHI and its subsidiaries.

Stating that the restructure would culminate in the migration of the company’s shareholders to the HoldCo via a Scheme of Arrangement pursuant to the provisions of Section 715 of CAMA and the Securities and Exchange Commission (SEC) rules and regulations, he explained that the scheme was subject to shareholders’ approval and sanction of the Federal High Court.

While applauding the shareholders for the approval, he said, the operations of the restructured group would be similar to those of the major global financial institutions, including businesses that Consolidated Hallmark considered to be its peers and competitors.

“The board anticipates that the restructured group will benefit from greater flexibility to adapt to the rapidly evolving financial landscape, and take timely advantage of value accretive opportunities due to a simplified corporate structure. In addition, the restructure will create potential economies of scale, as well as a more efficient and effective diversification of the company’s revenue source,” he pointed out.

 

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