Ahead of the June 2020 deadline given to insurers to recapitalise, shareholders of Niger Insurance Plc have approved and authorised the board of Directors to take all necessary steps to raise additional capital of up to N15 billion by way of rights issue, private placement or to negotiate merger and acquisition or any other form of business combinations.
The shareholders granted the underwriting firm approval at its 49th annual general meeting held in Lagos recently.
The shareholders also authorised the board of the company to restructure the company’s share capital by share consolidation, division, cancellation or redenomination of the shares of the company as shall be deemed fit and suitable by the directors.
The company received shareholders’ approval to provide as much as a discount of 70 per cent to its nominal value in consideration for the N15 billion capital raising.
Shareholders further mandated the board of directors to issue shares of the company “either at premium or a discount” provided that in the event of a discount, it shall not be more than 70 per cent discount to the nominal value.
Hence a report has disclosed that, Niger Insurance has set a base price of 15 kobo for its planned capital raising of N15 billion in anticipation of competitive pricing being orchestrated by price depreciation at the secondary market and competing offers.
The company’s share price over the weekend closed at the Nigerian Stock Exchange (NSE) at 20 kobo per share, 60 per cent below its nominal value of 50 kobo.