IEI gets shareholders’ approval to recapitalise

Shareholders of International Energy Insurance Plc (IEI), have given the company’s Interim Board the approval to recapitalise the company for growth and competitiveness.

Besides, the expected new capital when injected would enhance the firm’s working capital, improve IT infrastructure, meet solvency requirement as well as for investment opportunities.

Speaking at the 42nd yearly general meeting, held in Kano, the shareholders approved that the directors in conjunction with the technical committee should further recapitalize the company by raising additional N9 billion, which when added to initial recapitalization approval of N4 billion given at its 41st yearly general meeting amounts to a total approval of N13 billion.

The monies according to the approval could be raised from the capital markets, local, or foreign investors whether by way of private placement, public or rights offer and /or issuing ordinary and/ or preference shares of the company for such equity, whether by bonds, convertible loans or other debt instruments, with or without the option of converting such bonds, loans or other debt instruments to ordinary and or preference shares of the company or by debt equity conversion upon such terms and conditions as the directors may deem fit or determine, subject to all relevant approvals.

Besides that, the directors were also authorised to constitute a technical committee of the board and shareholders to re-negotiate and restructure the company’s indebtedness to Daewoo Securities (Europe) Limited.

The Interim Chairman of the board, Mohammad K Ahmad, said: “IEI said the board has taken necessary actions to stabilize and ensure sound management and growth of the company.”

According to him, the interim board has succeeded in getting approvals of the company’ financial accounts up to date, assuring that 2016 accounts would be ready soon.

He however said the company has achieved risk underwriting, strengthened internal control, cost optimization as well as implementing policies towards establishing good governance and industry best practice among others.

Ahmad assured shareholders that the board would ensure strong corporate governance and pursue measures to quickly return the company to profitability. “It is the responsibility of shareholders to ensure that the board who takes over from us are honest people, and those you can trust, stating that the interim board have no interest and does not represent any interest,” Ahmad added.

Meanwhile, a shareholder, Timothy Adesiyan, said NAICOM intervention has saved the company from total collapse. He urged the interim board to bring the firm to full stability before leaving.

Another shareholder, Oyiwole Omishola, also urged majority shareholders to consider the future of the company by giving their support to the interim board to enable them resuscitate and reposition the company for growth.