By Rosemary Onuoha
Mutual Benefits Assurance Plc has received shareholders’ approval to raise additional capital in order to meet the recapitalisation requirement of the National Insurance Commission, NAICOM.
Accordingly, the underwriter is embarking on a private placement to raise additional N4.8 billion, from its existing investors who have shown interest to increase their stake to enable the company meet its new capital requirement.
At the company’s Extra Ordinary General Meeting in Lagos, Mutual Benefits Board of Directors secured the approval of its shareholders to raise N4.8 billion, by the sale of 8.9 billion ordinary shares of 50 kobo each at 54 kobo per share. This is subject to regulatory approvals.
According to the company, among the shareholders that have indicated interest to take up the private placements includes Charles Enterprises, as well as Arubiewe Farms Limited.
Chairman of the company, Mr Akin Ogunbiyi, said given the impact of the COVID-19 pandemic on the global economy and the negative investors’ sentiments in the stock market, the company has decided to raise the additional capital required by way of private placement of its shares to some existing substantial investors who have indicated their readiness to commit further investment into the company to meet the new minimum regulatory capital.
Explaining details of the recapitalisation plan, Managing Director/Chief Executive Officer, Mutual Benefits Assurance Plc, Femi Asenuga, said the Company had planned to conclude every aspect of the exercise before the end of 2020, except for the Covid-19 pandemic.