Board of Linkage Assurance Plc has said that it plans to raise 2.89 billion ordinary shares in the authorised share capital of the company, through a special placement, at a price of 50k per ordinary share.
During an extraordinary general meeting of the firm in Lagos, the shareholders endorsed this decision, which is subject to obtaining the approval of the relevant regulatory authorities such as the National Insurance Commission, the Security and Exchange Commission and the Nigerian Stock Exchange.
The firm said it planned to raise such additional amounts of capital, either through the issuance of bonds, medium term notes or other instruments, or by obtaining loans (the aforementioned instruments for raising capital being hereinafter referred to as the securities), in such currency, number, tranches, series or proportions at such price, coupon or interest rate.
It added that this was within such maturity periods and on such terms and conditions as the directors might determine, and whether by way of special placement or by any other method subject to obtaining the approval of regulatory authorities.
The Managing Director of the firm, Mr. Gus Wiggle, said that if new fund was raised, the capital of Linkage would rise to about N4bn paid up capital from the present value of N2.5bn.
With enhanced capital, he said that Linkage would be among the well capitalised companies.
He said, “Far more than that, that will put us in the position of underwriting big ticket insurance policies, when the exercise is completed, it will enable Linkage Assurance to retain hitherto businesses that would have been ceded out so we will utilise our capital to the maximum and it will be working for us.”
