By Adedapo Adesanya
Following the approval of the Securities and Exchange Commission (SEC), top Insurance company, Consolidated Hallmark Insurance (CHI Plc), has commenced the process of raising an additional sum of N1,056,900,000 to further strengthen its capital base.
SEC gave the approval to the company to offer a total of 2,032,500,900 units of 50 kobo each at 52 Kobo per share through a Rights Issue to existing shareholders.
The offer opened on Monday, February 24, 2020 and is to run for a period of five weeks, with closing date set for April Fool’s Day, April 1, 2020.
Shareholders of the company whose names were on the register of members as at close of business on February 3, 2020 would qualify for the exercise. The shares would be given to them on the basis of one new share for every existing four units currently held.
The rights issue is one of the series of steps approved by shareholders of the company at an Extra-Ordinary General Meeting (EGM) in November, 2019 where the directors were unanimously given the mandate to embark on various measures to meet the new N10 billion required minimum capital base for operators in the general business and special risks category.
The lead issuing house to this offer is Planet Capital Limited, supported by SFS Financial Services Limited and IWorld Financial Services Limited as joint Issuing Houses, while Meristem Registrars acts as the Registrar to the offer.
Consolidated Hallmark in the last two years has raised funds through a rights issue and private placement, both of which were fully subscribed, said the Chairman of the company, Mr Obinna Ekezie.
According to him, the recapitalisation program is a welcome development that will lead to a stronger insurance sector with improved performance and also ensure that the company captures a larger market share and give better returns to all stakeholders.
On the part of the company’s Chief Executive Officer (CEO), Mr Eddie Efekoha, he said, “We are very confident of having a successful outing because our shareholders believe in us. We have shown commitment to shareholder value creation and paid dividend time and again.”
He assured that the company was still going to be consistent in paying dividend in the insurance sector and called on shareholders to exercise their rights in full.
Mr Efekoha also said that the company is rapidly expanding its operations into other financial services business with various subsidiaries that are contributing to revenue.
He said that the latest subsidiary that has been added to the stable is the CHI Microinsurance Limited, a Micro Life Assurance company recently granted approval in principle by NAICOM and set to commence operations by the second quarter of this year.
