Consolidated Hallmark Insurance to Raise Share Capital by N2.5b

By Dipo Olowookere

Plans are underway to raise the capital base of Consolidated Hallmark Insurance Plc, the company has disclosed.

The insurers said it hopes to raise its share capital from N5 billion to N7.5 billion with the creation of additional five billion units of its shares to 15 billion at 50 kobo par value per share.

However, to make this a reality, the firm has called for an Extraordinary General Meeting (EGM) in Lagos to seek the formal approval of shareholders.

In addition, at the EGM, “Shareholders will also at the meeting formally give their approval for additional capital raise through private placement of 1,130,000,000 units at the price of 65 kobo per share.”

According to a statement issued by the insurance company, this private placement will bring in an additional N734.5 million to the firm’s purse.

Managing Director of Consolidated Hallmark Insurance, Mr Eddie Efekoha, said he expects shareholders of the firm to approval the proposals of the board and management.

According to the firm, the moves are “the series of proactive efforts of the board and management to boost the working capital of the company and adequately position it as a leading player in the underwriting of big ticket insurance transactions, having successfully raised N500 million through the rights issue to existing shareholders of 1,000,000,000 units that was 108 per cent subscribed during the last quarter of 2017 but concluded in the first quarter of 2018.”