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Corporate deals
Prestige Assurance revises terms of rights issue
One of the publicly quoted insurance firms on the NSE, Prestige Assurance Plc, has revised the terms of its proposed rights issue.
One of the publicly quoted insurance firms on the Nigerian Stock Exchange (NSE), Prestige Assurance Plc, has revised the terms of its proposed rights issue.
This information was disclosed in a notification which was made available to dealing members of the Nigerian Stock Exchange and signed by the head of listing regulations of NSE, Mr Godstime Iwenekhai.
The General Manager, Prestige Assurance Plc, Sarbeswar Sahoo (left); Company Secretary, Abayomi Odulana; MD/CEO, Dr. Balla Swamy; the Chairman, Hassan Usman; Director, Gopalan Raghu; and Director, Mufutau Oyegunle,
In the revised terms of the proposed rights issue by Prestige Assurance Plc, 13,635,796,006 ordinary shares of 50 kobo per share are to be sold to existing shareholders at 50 kobo on the basis of 38 new ordinary shares for every 15 ordinary shares that was held as at the close of business on Friday, January 31, 2020.
This is against the initial terms of the proposed rights issue, which was 13,465,377,640 ordinary shares of 50 kobo each were to be sold to existing shareholders at 50 kobo on the basis of 5 new ordinary shares for every 2 ordinary shares that were held as at close of business on Friday, January 31, 2020.
[READ MORE: Investors support AIICO to raise capital through Rights Issue)
The proposed rights issue by Prestige Assurance Plc is part of the plans of the insurance firm to meet up with the recapitalization deadline set by the insurance regulator, National Insurance Commission (NAICOM). The regulatory agency had set out a deadline of December 31, 2020, for all insurance operators to meet up with the prescribed minimum capital requirement for the sector.
The board of Prestige Assurance Plc is quite hopeful that the funds to be raised would position the insurance firm for better operation and scale through the recapitalization hurdle.
Prestige Assurance Plc is one of Nigeria’s leading general insurance firms with offices nationwide with over 65 years of undisputable insurance services in the country. It was incorporated as a limited liability company on January 6, 1970, and licensed to write all classes of non-life insurance in Nigeria. Prior to its incorporation, it had operated as a branch office of New India Assurance Company Limited Mumbai, the largest general insurer in Afro-Asia region with presence in over 28 countries.
It has a shareholders’ fund in excess of N8.1 billion as at December 31, 2018.
Corporate deals
DEAL: uLesson raises $7.5 million Series A round
uLesson has announced that it has closed a $7.5M Series A round.
uLesson, a Nigerian educational learning platform that leverages best in class teachers, media, and technology solutions to create high-quality, affordable and accessible education for African students, announced that it has closed a $7.5M Series A round.
This funding round was led by US-based Owl Ventures, which is focused on education as an investment. It was also backed by existing investors — Founder Collective and TLcom .
READ: Flutterwave, One pipe, and funding raised by Nigerian Tech startups
Founded by Sim Shagaya, uLesson curates personalised, curriculum-relevant content via mobile and PC devices for students in the K-7 to K-12 segment across the continent. Students can access the lessons via streaming and SD cards, where they can download and store the content, allowing them to study remotely, removing challenges around internet access limitations and costs.
READ: Griezmann severs ties with Huawei over Uighurs Muslims identification report
According to Sim Shagaya,
- “The uLesson app has now been downloaded a million times with paying users from at least 7 countries (including countries we don’t formally serve). On average, learners spend around 77 minutes on the app daily — a figure that exceeds the engagement levels on most social networking apps.
- “Our goal is that ten years from now, K-12 education on the continent will bear little semblance to what you see today. But it won’t just be different, it will be better on most dimensions and much more affordable.
- “We also believe that the impact borne of the marriage of education and technology will be greater on the African continent than any other place in the world.”
This funding will be deployed to power uLesson’s expansion into Eastern & Southern Africa, as well as secure new talent and build its product development and production infrastructure.
Corporate deals
CAP and Portland Paints obtain Federal High Court approval on proposed scheme merger
A Federal High Court approved the proposed scheme merger between Chemical Allied Products Plc and Portland Paints Plc.
The Judicial Divison of the Federal High Court has approved the proposed scheme merger between Chemical Allied Products Plc and Portland Paints Plc, and other matters connected therewith.
In line with this, the Federal High Court ordered that a meeting of the holders of the fully paid ordinary shares of Portland Paints and Products Nigeria be convened and held for the purpose of considering and approving a Scheme of Merger between the concerned entities.
Portland Paints disclosed this on the NSE before the open of trade today.
The statement said upon approval by the shareholders at the court-ordered meeting, which will be held at 12:00 pm on Thursday, 18 February 2021 at Radisson Blu Hotel, the subjoined resolutions of the Scheme Merger shall be effected.
Overview of the Scheme Merger and options offered to shareholders
For the purpose of giving effect to the Merger as would be agreed between the Company and the Holders of the Fully Paid Ordinary Shares of Portland Paint Plc and Chemical and Allied Products PLC at the court-ordered meeting, shareholders of Portland Paint Plc at the close of business on the Terminal Date shall be offered the option:
- To receive a Cash Consideration of N2.90 for each ordinary share of N0.50 held in Portland Paints as at close of business on the Terminal Date.
- Or be allotted 1 ordinary share of N0.50 each in the share capital of CAP (credited as fully paid) in exchange for every 8 ordinary shares of N0.50 each held in Portland Paints.
Implied impact of the Scheme Merger between CAP and Portland Paints
Upon the Scheme becoming effective, the following modification shall be made:
- All assets and liabilities of Portland Paints including but not limited to real property, intellectual property rights, permits, credits, allowances, equipment and machinery, plant, fixtures and fittings, motor vehicles and businesses, shall be transferred to CAP.
- All employees and undertakings rights, powers and duties of a personal character, which could not generally be assigned or performed vicariously, of the Company shall be transferred to CAP.
- All legal proceedings, claims and litigations pending or contemplated by or against the Company be continued by or against CAP.
- The entire share capital of the Company shall be cancelled, and the Company shall be dissolved without being wound up.
- All contracts of the Company shall continue to be in force and effect in accordance with their respective terms and conditions, and CAP shall assume all rights and obligations of the Company under all such contracts.
- All monies standing to the credit of the Company at banks and with other debtors within and outside Nigeria be held to the credit of CAP.
Corporate deals
FMDQ Securities Exchange admits Total Nigeria Plc and 2 others CPs
FMDQ has announced the admission of three new Commercial papers.
