Globe-Re Returns Money For Unalloted Private Placement Shares

After series of denials on the possibility of returning money to investors who took part in the company’s 2006 Private Placement (PP), there are strong indications that Globe-Reinsurance has commenced returning money for un-allotted shares in its private placement.

However, market trend watchers said that the commencement of returned money to investors may trigger some more confusion in the market because many investors that had bought into the private placement through third parties might not even get their money back because the third parties through whom they bought the Globe-Re Private Placement did not file for purchase of the shares on behalf of the investors.

Most of the guilty third party go-between had held down the anxiety of the investors on the excuse that the reinsurance had not concluded its private placement allotment. For the other investors that may be fortunate to be allotted shares, their investment had been locked down in the company for upward of three years without dividend, neither the extreme possibility of capital appreciation because the shares are yet to be listed on the Daily Official List of the Exchange.

Globe-Re in 2006 sought to raise fresh funds by way of placement and offered to investors six billion ordinary shares of 50 kobo each at 85 kobo per share. Afribank Capital Markets Limited was joint issuing house to the placement.