AXA Mansard Insurance obtains NAICOM, SEC approval to reconstruct shares

By Kayode Tokede

AXA Mansard Insurance Plc, has obtained pre-requisite regulatory approvals to reconstruct its shares, from a nominal value of 50 kobo to N2 per share.

This is according to a disclosure signed by the company’s secretary, Mrs Omowunmi Mabel Adewusi, which partly reads:  “Following the Extraordinary General Meeting of AXA Mansard Insurance Plc (AXA Mansard) held on Monday, 07 December 2020, the Company secured the approval of its shareholders for the share reconstruction / redenomination of AXA Mansard’s shares from a nominal share value of N0.50 to N2.00.”

Buoyed by the support it got from its shareholders, the insurance giant further sought and obtained necessary regulatory approvals from the National Insurance Commission (NAICOM) on Monday, 19 July, 2021, and the Securities & Exchange Commission (SEC) on Monday, 16 August 2021, respectively.

Consequently, the shares of the company will be suspended from trading on the Nigerian Exchange Limited (NGX) on Thursday, 09 September 2021, so that the shareholders’ register can be updated with the reconstructed shares. Once this is concluded, the suspension will be lifted and trading on the shares shall recommence.

Share reconstruction is just a technical process of reducing the total number of a company’s outstanding shares, by cancelling out shares it does not need. The exercise will increase the nominal value of the company’s share, whilst retaining its market value.

AXA Mansard Insurance Plc, closed trading on the 7th of September, 2021 with a share price of 88 kobo per share, and a total outstanding shares of 36,000,000,000.