By Dipo Olowookere
Trading in the shares of Sunu Assurances Nigeria Plc will be suspended on the floor of the Nigerian Stock Exchange (NSE) next Monday.
Business Post gathered that the suspension in the trading in the company’s securities on the exchange is due to the share reconstruction proposed by the board.
Recall that on March 9, 2020, shareholders of the company authorised this exercise at an Extraordinary General Meeting (EGM).
The company, through its stockbroker, FSDH Securities Limited, filed an application for the share capital reconstruction to the exchange.
In a circular issued by the exchange to stockbrokers on Thursday, it was disclosed that during the exercise, which has a qualification date of Friday, October 16, 2020, the company’s equities will be reduced to 2,800,000,000.
Sunu Assurances Nigeria said it would be cancelling four existing ordinary shares out of every five ordinary shares of the firm held by shareholders at the close of business tomorrow.
“Dealing members are hereby notified that following the special resolutions passed by the shareholders of Sunu Assurances Nigeria Plc at the Extra-Ordinary General Meeting held on March 9, 2020, in favour of the company’s proposal to carry out a share capital reconstruction, Sunu Assurances Nigeria Plc through its stockbroker, FSDH Securities Limited, has submitted an application for the share capital reconstruction to the Nigerian Stock Exchange.
“The share capital reconstruction will result in the cancellation of four existing ordinary shares out of every five ordinary shares of Sunu Assurances Nigeria Plc held by its existing shareholders.
“The total number of issued ordinary shares post the capital reconstruction exercise will be 2,800,000,000 ordinary shares of 50 kobo each while a total of 11,200,000,000 ordinary shares of 50 kobo each will become cancelled and unissued.
“The qualification date for the capital reconstruction is Friday, October 16, 2020, while trading in the company’s shares will be placed on suspension effective Monday, October 19, 2020,” the circular issued by the NSE to stockbrokers today and obtained by Business Post stated.
Sunu Assurances expects its equity price to trade around N1 after the share reconstruction and as at press time, the shares were trading at 20 kobo each.
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