Insurer gets shareholders’ nod for private placement

Mutual Benefits Assurance Plc has gotten the approval of its shareholders to raise money from private placement ahead of the industry’s recapitalisation deadline.

Speaking on the development at the Extraordinary General Meeting (EGM) held in Lagos, the Chairman of the company, Dr. Akin Ogunbiyi, said it is important the operator increases shareholders’ funds and strengthens its capital base.

Also, the fresh capital will help deepen its capacity to underwrite risks, upgrade information technology and enhance working capital, he said.

Ogunbiyi reassured shareholders of the company’s commitment to sustainable growth in line with its five-year strategic plan.
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At the meeting, the shareholders approved the plan to raise N4.8 billion through private placement and increase the company’s share capital from N10 billion to N10.5 billion.

They resolved that under Article 35 of the Articles of Association, the authorised share capital of the company should be increased from N10 billion to N10.5 billion by the creation of 100 million additional ordinary shares of 50 kobo each ranking parri-passu in respect with the existing ordinary shares of the company.

The shareholders authorised the board to raise additional capital via the issue of debt or equity or a combination of both.

Commenting on the recapitalisation deadline, Managing Director, Consolidated Hallmark Insurance, Eddie Efekoha, was optimistic of the company’s success, as its shareholders are delighted with the regular dividend payments in the past 10 years.