The board of directors of Aiico Insurance have secured the approval of its shareholders to raise N10 billion from the capital market, as part of its second phase recapitalization efforts in the ongoing reform in the insurance industry.
The shareholders gave the nod at the company’s extraordinary general meeting in Lagos, recently, thus giving the directors the go-ahead, to raise the additional capital, by issuing a maximum of 10 billion ordinary shares of 50 kobo each.
Aiico shareholders also want such shares to rank paripassu with the existing shares of the company, or its equivalent in foreign currency through any of the following convertible loans, equity or a hybrid, by way of offer for subscription upon terms and conditions to be determined at the discretion of the directors.
The directors were also empowered that in the event of oversubscription, subject to the approval of the regulatory authorities, they should recapitalize the excess money and allot additional shares to the extent that may be accommodated by the company and the issued capital and that the proceeds shall be used for the same purpose as the offer.
Dele Fajemirokun, chairman of the company, assured the shareholders that the board would do everything possible to ensure the success of the offer. He noted that he does not believe in offer underwriting, stating that if the shareholders do not have confidence in the company it would die.
Fajemirokun said that the essence of the offer is to build capacity for future businesses, so that Aiico can be in a stronger position, to the extent of acquiring any of the banks.
