During an Extra-Ordinary General Meeting of LASACO Assurance Plc, shareholders of the company have approved the decision of the board of directors of the company to raise an additional N10 billion ordinary shares.
In a bid to position LASACO as a major tier one company under the tier-based minimum solvency capital requirements of the National Insurance Commission, stakeholders of the company have resolved to fork up LASACO’s capital base.
The N10 billion will be of 50 kobo ordinary shares each at 50 kobo per share, wither by way of public offer, special placement or rights issue and/or up to 10 million preference shares of 1,000 each at N5000 per share.
A statement by the company also has it that its shareholders resolved that the authorised share capital of the company be and is hereby increased from 10 billion to 20 billion by the creation and addition of 10 billion ordinary shares of 50 kobo each. “Such new shares to rank pari passu in all respects with the existing ordinary shares in the capital of the company.” The statement added.
Part of the company’s resolution was that “the board of directors be and are hereby authorised to exercise all the powers of the company to modify and/or conclude the terms of the public offer, special placement or rights issue, seek approvals from the relevant regulatory authorities, appoint professional parties and advisers, and finalise and execute all agreements or documents.
The board was authorised to do all such acts and deeds which it, in its absolute discretion, might deem necessary and expedient for the purpose of the public offer, special placement or rights issue or preference shares “without being required to seek further consent or approval of members of the company or otherwise to the end and intent that they shall be deemed to have given approval thereto expressly by the authority of the resolution.”
The company is currently trading at N0.3 on the floor of the Nigerian Stock Exchange (NSE). Results for the half year ended June 2018 show gross premium written increased from N4.7 billion in 2017 to N6.3 billion in 2018. Profit before tax increased from N483 million in 2017 to N527 million in 2018. Profit after tax, however, declined from N387 million in 2017 to N382 million in 2018.