In a bid to meet the June 2020 recapitalisation deadline set by the National Insurance Commission (NAICOM), Guinea Insurance Plc, has been granted permission by its shareholders for its plan to beef up its capital base to N12 billion.
The shareholders gave the approval at the company’s 61st Annual General Meeting held recently in Uyo, Akwa Ibom State.
With the approval, the underwriting firm is set to increase its authorised share capital from N4 billion to N12 billion by the addition of the sum of N8 billion divided into 16 billion ordinary shares of 50 kobo each ranking in all respect pari-passu with the existing shares of the company.
Speaking at the event, the Chairman of the company Godson Ugochukwu, said “the approval, as given by our perceptive shareholders, brings to the table, penetrating insights and sustainable fair shakes that will bolster our get-up-and-go capital structure reorganisation action plans.
“Options available to us are either to; approach the capital market by way of a public offer, private placements, rights issue, book building process or other methods; inject funds into the company or consider the possibility of a merger with another company operating in the general insurance business portfolio.
He further added that “the Board had engaged the services of professional parties and advisors to provide matter-of-fact counsel that will engender accuracy and timely decision making especially, as we are materially mindful of the stipulated time frame given by the regulator”.
The shareholders also approved the appointment of Ademola Abidogun as Managing Director/Chief Executive Officer of the company while also acknowledging his numerous years’ experience in providing strategic and operational leadership in uniquely challenging situations in the insurance industry.