LASACO Assurance successfully reconstructs 7.3bn ordinary shares
LASACO Assurance Plc has announced the completion of its share reconstruction exercise of about 7.3 billion ordinary shares.
The Nigerian Stock Exchange (NSE) disclosed this through the weekly trading report at the bourse obtained on Sunday by Business Metrics.
LASACO Assurance Plc had earlier informed the market that it had obtained regulatory approval to reconstruct 7,334,343,421 ordinary shares of 50 kobo each at N0.42 per share in the ratio one (1) new ordinary shares for every four (4) ordinary shares previously held by its shareholders.
Business Metrics notes that share reconstruction, also known as reverse stock split is a mechanism used by companies to reduce the number of outstanding shares and increase their share price proportionately without affecting the total book value of those shares. It decreases the number of shares, but not the value of shares held by shareholders
In a bid to facilitate the reconstruction exercise, trading in the shares of LASACO Assurance Plc was initially placed on full suspension for 2 weeks, and further extended by a week.
Following the completion of the share reconstruction exercise, the suspension was subsequently lifted on the 22nd of February, 2021.
Consequently, LASACO’s entire issued share capital of 7,334,343,421 ordinary shares of 50 Kobo each at N0.42 per share prior to the share capital reconstruction was delisted from the Nigerian Stock Exchange’s daily official list, while the 1,833,585,855 ordinary shares of 50 Kobo each at N1.68 per share arising from the share capital reconstruction were listed on the exchange’s daily official list on the same day.