AIICO Insurance Plc, has sealed a deal with shareholders to raise its authorised share capital to N20b from N18b, two billion naira above the minimum requirement.
This was sealed at the virtual 50th annual general meeting held in Lagos in accordance with strict pandemic protocols; the new additional layer of capital of N2b will be raised by the existing shareholders.
The company’s board created additional four billion ordinary shares of 50 kobo each and the shareholders responded and approved the declaration of one bonus share for every eight ordinary shares held by existing shareholders as a December 28, 2020, to be paid from retained earnings, and one bonus share for every five ordinary share premium, to be taken by same existing shareholders, as specified for capital raised from retained earnings.
The board chairman, Mr. Kandan Sainani, profusely thanked the shareholders and assured them of board’s commitment to continue to steer the affairs of the company on the path of continuous and sustainable progress, irrespective of daunting macro-economic challenges.
The managing director and chief executive officer, Mr. Babatunde Fajemirokun, also rendered the satisfactory progress the company has made in its recapitalisation journey having surpassed the December 31, 2020 expectations of the regulator.
With the first stage of recapitalisation accomplished, Fajemirokun placed the score sheet before the shareholders: “There are no doubts that we have made some giant strides along this path. Beyond just meeting the requirements we have positioned ourselves to take full advantage for value creation, both in the short and long term. AIICO will emerge stronger and with greater capacity to underwrite more risks.”