The process to create a holding company to better manage the operations of Enterprise Insurance and its two subsidiaries could be finalized Thursday.
That is if shareholders of the oldest insurance firm give the board the nod to kick start the process at its Extraordinary General Meeting today.
Enterprise Insurance currently has two subsidiaries; Enterprise Life Assurance and a real estate firm, but the board wants to be given the approval to create a holding company, Enterprise Group, to manage all these businesses and free EIC of its current role as a holding company.
Managing Director George Otoo outlined to Joy Business why the business has to go this way.
“…The group will have that flexibility to think and have the vision of looking for businesses that will increase the profitability base of the company,” he said.
The proposals if approved will see the insurance firm delist from the Ghana Stock Exchange and list again as Enterprise Group Limited.
Shareholders will also get five new shares in the new group for every share currently held in EIC.
The move is similar to what UT financial services went through to merge its operations with UT Bank.
Source: Joy Business/Myjoyonline.com/Ghana