Shift in AIICO Insurance AGM Worries Observers

September 16, 2020
AIICO rights issue

By Dipo Olowookere

The postponement of the Annual General Meeting (AGM) of AIICO Insurance Plc is already making some market participants raise eyebrows.

According to them, the reason given by the board of the company for the change in the date of the meeting is not convincing enough.

On Tuesday, the insurance firm issued a notice to the Nigerian Stock Exchange (NSE) that it would no longer be having the anticipated AGM to discuss the financials of the company on September 30, 2020.

In the disclosure yesterday, AIICO Insurance said this meeting will now hold on Tuesday, December 8, 2020.

The reason given for the shifting of the shareholders’ gathering is because of the N3.5 billion rights issue of the company, which opened on Wednesday, September 2, 2020, and will run through Wednesday, October 7, 2020.

In the exercise, the underwriter is offering a total 4,357,770,954 ordinary shares of 50 kobo each at 80 kobo per unit on the basis of five new ordinary shares for every 13 ordinary shares held as at the close of business on Monday, June 15, 2020.

“The board of directors of AIICO Insurance Plc wishes to inform the shareholders of AIICO Insurance Plc that the earlier date, Wednesday, September 30, 2020, it intended to hold its AGM, earlier published by the company as contained in the corporate action posted on the portal of the NSE will no longer hold as earlier published.

“The company intends to now hold its 2019 AGM on December 8, 2020,” the notice yesterday said.

“This change in date is occasioned by the delay in concluding a number of transactions earmarked as conditions precedent to the AGM.

“One of the conditions is (but not limited to) the conclusion of rights issue to the shareholders of the company which although has now commenced, was delayed majorly because of the issues arising from the COVID-19 pandemic,” AIICO Insurance explained.

“A formal notice of meeting including venue and time will be communicated to the shareholders in due course,” the firm assured.

But some observers in the nation’s stock market, who spoke with Business Post, said they are not convinced with the excuse given by the board of the company.

“How does a rights issue which started this month hinder a company to hold its AGM meant to discuss its performance in the previous financial year,” an investor in the market, Mr Akinade Muyiwa, queried.

Another investor, Mr Sodade Seyi, said, “I just hope the board is not hiding something from shareholders of the company.”

A stockbroker with one of the leading brokerage firms in Nigeria, who asked not to be named, submitted that, “Things like this affect the corporate governance of a company. I want to believe the decision of the board to shift the AGM is in the best interest of shareholders.”

Business Post reports that shares of AIICO Insurance depreciated at the stock exchange on Wednesday by 3.41 per cent or 3 kobo to 85 kobo per unit.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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