The shareholders of Consolidated Hallmark Insurance Plc have given the company the approval to raise N4.5bn additional capital to shore up its minimum paid-up capital to N10bn.
They gave the approval during the company’s extraordinary general meeting in Lagos.
During the meeting, the company disclosed that this was part of its steps to meet the recapitalisation requirements of the National Insurance Commission ahead of the June 30, 2020 deadline given to insurance companies in the country.
They approved that the company’s authorised share capital be increased from N7.5bn divided into 15 billion ordinary shares of 50 kobo each to N10bn divided into 20 billion ordinary shares of 50 kobo each with the creation of additional five billion ordinary shares of 50 kobo each.
While the shareholders authorised the company to raise additional capital of up to N1.056bn through a right issue of 2.032 billion units to the ratio of 1:4 at N0.52 per share, they also approved the plan to raise N4.5bn, whether by way of private/public, special offering, rights issue or a combination or other methods the company deemed fit.
They said the N4.5bn or its equivalent could be raised locally or internationally through the issuance of shares, long-term debt, preference shares, convertible and non-convertible securities or depository receipts or any other instrument(s), whether as a standalone transaction, or a combination.