Prestige Assurance Plc Writes NSE on Share Capital Reduction

By Modupe Gbadeyanka

The board of Prestige Assurance Plc has made an application to the Nigerian Stock Exchange (NSE) that its shareholders have given their approval for its planned reduction in the company’s share capital.

On Friday, August 18, 2017, at the company’s 47th Annual General Meeting (AGM) held in Lagos, shareholders of the firm gave their approval to the board’s proposal for the share capital reduction.

Consequently, the board has filed an application to the NSE, notifying the stock market regulator that it was ready to go on with the proposal.

A statement issued on Wednesday, August 30, 2017 by NSE’s Acting Head of Listings Regulation Department, Mr Godstime Iwenekhai, disclosed that Prestige Assurance Plc is seeking to reduce its share capital from N2,685,216,000 being 5,370,432,000 ordinary shares of 50 kobo each to N1,908,705,000 being 3,817,410,000 ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the firm.

The statement explained that, “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets.”

Prestige Assurance Plc explained that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.5 million.

It stated further, that the reconstruction will reposition the company on a trajectory for subsequent accumulated retained profit, create more value to its shareholders, allow it declare dividend and improve its perception in the market thereby making it more competitive.

Business Post gathered that the share capital reconstruction will mean each shareholder will have to surrender about 11 shares for every 38 held in the firm.

At the company’s AGM about two weeks ago, Prestige Assurance Plc said it has successfully paid the Dana Air claims which occurred in June 3, 2012.

Managing Director of the firm, Dr Balla Swamy, while commenting on this, stated that “being a major calamity, we acknowledge the big role played by our parent company The New India Assurance Company Ltd in supporting Prestige Assurance in achieving this feat.