Nexamont Company Limited has purchased 1.77 billion ordinary shares, equivalent to a 21.4% stake, in Royal Exchange Plc, a prominent Nigerian financial services firm.
The acquisition was disclosed in a filing with the Nigerian Exchange Limited (NGX), in line with Rule 17.13(a), Part II of the NGX Rulebook.
Nova Finance Securities Limited, acting as Nexamont’s financial adviser, facilitated the transaction through the secondary market. The filing stated, “Royal Exchange Plc received a letter from Nova Finance Securities Ltd., notifying the company that Nexamont has acquired 1,770,499,535 units of ordinary shares through the secondary market.”
At Royal Exchange’s current share price of N2.04, the acquired shares are valued at approximately N3.6 billion, though the actual purchase price was not disclosed. The company’s share price has surged by 234% over the past year, reflecting strong market interest.
Recall that in May 2025, a trading volume of N903.5 million for Royal Exchange occurred despite a 0.40% decline in the All-Share Index, suggesting growing investor confidence that may have paved the way for Nexamont’s acquisition.
Incorporated on June 5, 2024, with registration number RC-7551053, Nexamont is a relatively new entity led by Nzerem Yvonne Chinecherem, its primary shareholder. The company has not yet revealed its strategic objectives for the acquisition.
The deal aligns with significant changes in Nigeria’s insurance sector following the Nigerian Insurance Industry Reform Act (NIIRA) 2025, enacted in August. The Act raises capital requirements for insurers: life insurance firms must increase capital from N2 billion to N10 billion, non-life insurers from N3 billion to N15 billion, and reinsurance companies from N10 billion to N35 billion, with a 12-month compliance period. This has spurred mergers, acquisitions, and strategic partnerships, as seen in the May 2025 merger of Sanlam and Allianz’s Nigerian operations into SanlamAllianz Nigeria, followed by NAICOM issuing operational licenses in July.
Royal Exchange Plc reported robust financial performance for the first half of 2025, with a 94% increase in profit before tax to N1.51 billion, a 72% rise in earnings to N1.71 billion, and a 32% growth in shareholders’ funds to N8.24 billion. Total assets reached N11.14 billion, with no new borrowings and reduced liabilities, while earnings per share climbed to 37 kobo, and the stock price rose 72% year-on-year to N1.10.
