BY NKECHI NAECHE-ESEZOBOR—Ahead of recapitalization deadline, Lasaco Assurance Plc shareholders have given the green light for the company to raise additional capital, increasing its shareholders funds by N25 billion through a combination of Private Placement and Rights Issue.
The approval was given during an Extraordinary General Meeting held at Lasaco House in Lagos on Tuesday.
Shareholders voted on key resolutions that will enable the insurer to significantly strengthen its capital base, a move aimed at expanding its business capacity and market presence.
All new shares issued will rank pari passu with existing ordinary shares, ensuring equal rights for all shareholders once the capital raise is completed.
READ ALSO: Lasaco Assurance Achieves 25% Revenue Growth, Pays N13.19bn In Claims For 2024
Among the decisions is an increase of the company’s capital base by N25 billion through a combination of private placement and rights issue.
To protect investors, it was resolved that the rights and privileges attached to the new shares will be on par with those of existing shares.
The board has also been authorised to finalise the terms of the capital increase, appoint professional advisers, and obtain all necessary regulatory approvals.
Additionally, the company’s memorandum and articles of association will be amended to accommodate these changes, ensuring the company’s legal documents accurately reflect the new capital structure.
Reacting to the successful approval while speaking with journalists, the Chairman, Lasaco Assurance Plc, Chief Mrs. Maria Olateju Phillips, emphasised the strategic importance of the capital raise for the company’s future.
She stated, “This exercise will enable us to meet the regulatory requirement and also aid our competitive stand as a company”
“We are great custodians of investments of the shareholders, and they will be quite impressed that we want to forge ahead like this.”
She further emphasised the long-term vision, “On the long run, what is the future prospect? Once your yield and return are great, the shareholders will be impressed.”
The Acting Managing Director, Mr. Ademoye Shobo, while speaking on the company’s position on the ongoing recapitalization exercise in the insurance industry, said,” Our recapitalisation plan confirms our commitment to continue operating life and non-life businesses.
“We have invested heavily in technology and in our people; and with the new funds, we will further expand and strengthen our position. We will be recapitalised beyond the regulatory minimum.”
