LASACO Assurance Plc, said it has concluded plans to raise N10 billion additional capital to from its existing and new shareholders, as part of efforts to position the company to operate as a Tier 1 level player under the newly introduced recapitalisation and reclassification structure by the National Insurance Commission (NAICOM).
The company, having secured its shareholders’ approval, will in the weeks ahead unfold strategies to raise the new fund, which will enable it play big in the nation’s insurance industry under the current Tier Based Minimum Solvency Capital introduced by NAICOM.
At the company’s extra-ordinary General Meeting in Lagos, the its Board of Directors secured shareholders’ approval, subject to the approval of the relevant regulatory authorities, to raise additional capital through the issuance of up to Ten Billion Naira ordinary shares of 50k each at 50k per share either by way of public offer, special placement or rights’ issue and /or up to 10,000,000 (Ten million) Preference Shares of 1,000 each at N500 per share’’ .
The company Chairman, Aderinola Disu, said the Tier-based recapitalisation exercise being initiated by NAICOM, was responsible for the move by the company to upgrade its capital base to enable it play in the top echelon of the insurance sector of the economy.
She said the insurer was planning to raise addition capital through the issuance of up to 10 billion ordinary shares of 50 kobo per share and of 10 million preferential shares of N500 per share, subject to the relevant regulatory approvals.
Speaking on behalf of shareholders, founder, Independent Shareholders’ Association of Nigeria (ISAN), Sunny Nwosu, advised the company to adopt preferential shares option, while reducing its ordinary shareholders, a decision, he said, would allow shareholders get good returns on investments.