BY PROVIDENCE OBUH WITH AGENCY REPORT

Royal Exchange Plc Group has announced plans to streamline the capital of Royal Exchange Prudential Life Plc by canceling a N3.669 billion book debt in the Revenue Reserve Account from its Share Premium Account (SPA).

According to a notice made available to the Nigerian Stock Exchange, NSE, the company stated that the capital restructuring is by way of cancellation of N3.669 billion book debt in the Revenue Reserve Account from its Share Premium Account (SPA) of N4.081 billion as indicated in its balance sheet.

“The proposed transaction is expected to leave a balance of N414,736.00 in the SPA of the company” the notice said.

Royal Exchange further affirmed that the proposed capital restructuring is fully allowed by law under the provisions of sections 106 -120 of the CAMA and the firm intends to undertake the restructuring following the procedure outlined in the law including seeking and obtaining the sanction of the shareholders of the company and of the Federal High Court as stipulated by the Companies and Allied Matters Act, CAMA.

The company also said that the capital restructuring is intended to deliver real benefits to shareholders as well as to clean up the books of the company, adding that it will not involve any distribution or repayment of capital by the company to any shareholder or other person, and will not affect its net asset position.

Royal Exchange Life is a Public Company registered pursuant to the provisions of the Companies and Allied Matters Act (CAMA) 2004. “The Company as an establishment carries on the business of general insurance under the Royal Exchange Plc. Group”

“As a private entity the company’s shares are not listed on the Exchange, however the parent company’s shares are.