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VFD Group, a proprietary investment company, has sold its stake in NEM Insurance Plc. According to a statement released by the VFD Group on Friday, the shares were sold in conjunction with other key stakeholders of the insurance company at year end 2018. The trade reportedly closed at a significant premium to the closing price on the floor of the Nigerian Stock Exchange.

A combined block of 1.6 billion ordinary shares of NEM Insurance Plc., representing about 30 per cent of the insurance company’s issued share capital, was sold to new shareholders. The new shareholders were, however, not named in the statement. In 2007, after a recapitalization exercise, NEM Insurance Plc. merged with Vigilant Insurance Company Limited to transact all classes of general insurance.

“We have had extensive discussions with the management and board of NEM Insurance Plc,” VFD said in an official statement. “In the last couple of months over our interest in working with the team to unlock the latent value we see in them. However, as we could not agree on the modalities for working together in pursuing this vision, we recently reached an amicable understanding and have thus decided to exit our investment in this great company.”

In a separate statement, VFD Group announced that it raised N2.78 billion from rights issuance and private placements in December 2018. It stated that it initially planned to raise N2 billion, hence, suggesting a 39 per cent oversubscription.

According to the statement, this oversubscription is indicative of the confidence existing and new shareholders have in VFD Group.

VFD Group was incorporated with the Corporate Affairs Commission in July 2009 and commenced operations in January 2011. Through its subsidiaries, VFD Group creates value by working with Nigeria’s informal financial sector to create innovative products and solutions that are accessible to entrepreneurs.

It provides financial advisory, asset management, currency, real estate, debt services and private funds management services.