By Adedapo Adesanya
In order to meet a new capital base of N10 billion as directed by the National Insurance Commission (NAICOM), the board of Universal Insurance Plc has secured an approval from shareholders to raise fresh funds.
At company’s 49th Annual General Meeting (AGM) held in Lagos recently, the shareholders said the board can go ahead to source for capital to meet the new requirement.
They said this can be achieved through right issues or share reconstruction and from what the management said, the company will need at least N3.5 billion addition funds to be safe.
According to the Acting Board Chairman of Universal Insurance, Mr Anthony Okocha, the insurer has over 30 billion registered shares, out of which only 16 billion units have been issued, while the remaining 14 billion units are still warehoused and could be brought up for issuance if need be.
He disclosed that the company already has N6.5 billion and would need an additional N3.5 billion to make up for recapitalisation requirement as a general business insurer.
Mr Okocha said the company will now seek to raise the company’s capital through right issues or share reconstruction in order to raise additional equity capital to the maximum limit of the authorized share capital.
“This will be done whether by way of special placement or public officer with or without a preferential allotment/or rights issue or a combination of any of them, either locally or internationally and upon such terms and conditions as the directors may deem fit in the interest of the company and subject to the approval of the regulatory authorities.
“That in the event of over subscription of the offer/issue to capitalise the excess money and allot additional shares to the extent that can be accommodated by the company’s unissued share capital subject to the approval of the regulatory authorities and that the proceeds should be used for the same purpose as the offer/issue,” he said.
Speaking on steps to meet up with the exercise and beat the December 31, 2020, deadline, Mr Okocha stated, “More discussion is ongoing but could not be discussed prematurely. We are also looking at Right Issues, the company is in discussion with core investors and probable foreign influence into your company.”
