By Alex C
Sovereign Trust Insurance plc has announced its intentions of raising additional capital of about N1.1 billion from existing shareholders through Rights Issue.
Segun Bankole, head of corporate communications and brand management department, explains that the Rights Issue is a necessary step towards accomplishing its five-year strategic blue-print, which among others, will reinforce its competitiveness in the Nigerian market and improve its market share.
The company is placing on offer by way of Rights, 2,290,585,798 (Two billion two hundred and ninety million, five hundred and eighty-five thousand, seven hundred and ninety-eight) ordinary shares of 50 kobo each at 50 kobo per share on the basis of one (1) new ordinary share for every three (3) ordinary shares of 50 kobo, each subject to approval of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).
The principal activity of the company continues to be the provision of all classes of non-life insurance and special risk insurance and the fundamentals of its business remain solid.
Wale Onaolapo, managing director/CEO, encouraged existing shareholders in the company to see this as a vista of opportunity to take up their rights during the offer and buy into the growth objectives of the company. He says in addition to ensuring the actualisation of the company’s goals, the exercise will further boost the aspiration of the company to creating exceptional values.