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AXA approaches stock investors for fresh N12.75bn capital

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AXA Mansard Insurance grows written premium rises 27% to N60.2bn
  • Creates new 25.5bn new shares

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 AXA Mansard Insurance Plc has revealed plans to raise its share capital from its current N5.25 billion to N18 billion, equivalent to 242.86 per cent increase.

The company made this known through a filling at the Nigerian Stock Exchange (NSE) informing its shareholders and the investing public of an Extraordinary General Meeting where the issue of capital raise, alongside many other issues will be discussed.

According to the company, the new capital target will be raised by creation of additional 25.5 billion ordinary shares of N0.50 each which is in line with Section 102 of Companies and Allied Matters Act, Cap C20 Laws of the Federation of Nigeria, 2004 (CAMA), and Article 40 of the Company’s Articles of Association.

The extraordinary general meeting slated for Monday December 7, 2020 will hold at the Oriental Hotel, Victoria Island, Lagos State, according to the information obtained by Business Metrics.

In addition, the insurer also mulls issuance of bonus shares such “That in accordance with section 383 of CAMA, and Article 111 of the Articles the funds for the time being standing to the credit of any of the company’s reserve accounts or to the credit of the profit and loss account or otherwise available for distribution, up to the sum of N12.75 billion shall be capitalised, for the purpose of issuing Bonus Shares as fully paid shares to the shareholders.

“That the newly created 25.5 billion ordinary shares of N0.50K each be issued and allotted as fully paid bonus shares to the Company’s shareholders standing in the register of members of the Company as of 23 November 2020 (the Relevant Date);

“In the proportion of Seventeen (17) new ordinary shares for every Seven (7) ordinary Shares held as at the Relevant Date (“the Bonus shares”).

“That where the issuance of the Bonus Shares results in a fraction of a share being held, the Company be authorised to round that fraction down to the nearest whole share or zero, as the Directors may deem fit.”

Further details of the notice also touches on consolidation and reconstruction of shares such that “in accordance with Section 101 of CAMA and Article 44 of the Articles; the nominal value of the issued ordinary shares of the Company be and is hereby altered from 50 kobo each to N2.00K each, by the consolidation of every four (4) shares held by each shareholder into one (1) share;

“That where the consolidation results in a fraction of a share being held, the Company be authorised to round that fraction down to the nearest whole share or zero, as the Directors may deem fit;

“That the consolidated shares shall have the same rights and be subject to the same restrictions as the existing shares of the Company; and that  the consolidation shall be deemed to take effect on 31 December 2020,” the company has explained.

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