Sovereign Trust Insurance to raise ₦20.00 billion new capital

Sovereign Trust Insurance Plc (NGX: SOVRENINS) is set to undertake a capital raise of up to ₦20,000,000,000.00 (Twenty Billion Naira).

Also read; Union Bank of Nigeria completes merger with Titan Trust Bank Limited

At its Annual General Meeting of Sovereign Trust Insurance Plc scheduled to be held on Thursday, September 25, 2025, Shareholders will be asked to approve the capital case along with other resolutions.

The 30th AGM of Sovereign Trust Insurance Plc will take place at the Bay Lounge Hall, Block 12A, 10 Admiralty Road, Lekki Phase 1, Lagos to transact the following businesses:

Ordinary Business:

To lay before the Meeting the Audited Financial Statements for the year ended December 31, 2024, together with the Reports of the Directors, Auditors and Audit Committee thereon.
To declare a Dividend.
Ro re-elect the following Non-Executive Director that is retiring by rotation. (a) Mr. Eric Balogun.
To authorize the Directors to fix the remuneration of the Auditors.
To disclose the remuneration of the Managers of the Company.
To elect the Shareholders’ representatives on the Statutory Audit Committee.

Special Business:

To fix the Non-Executive Directors’ fees for the year ending December 31, 2025, at ₦10,500,000.00.
To consider and if thought fit pass the following as ordinary resolutions;
1. That the Company be and is hereby authorized to undertake a capital raise of up to ₦20,000,000,000.00 (Twenty Billion Naira). The capital raise transaction shall be implemented by one or more transactions, through the issuance of shares, by way of a public offering, private placement, rights issue in the Nigerian or international capital markets, at price(s) to be determined by way of a book building process or any other valuation method or combination of methods, in such tranches, series or proportions and at such periods or dates, coupon or interest rates, within such maturity periods and upon such other terms and conditions as may be determined by the Board of Directors (the Directors), subject to obtaining the approvals of the relevant regulatory authorities.
2. That the capital raise referred to in resolution (a) above may be underwritten on such terms as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.
3. That the share capital of the Company be increased by the exact number of ordinary shares which would be required upon determination of the terms of the capital raise and the Directors are authorised to pass resolutions for such increase, as well as to allot the new ordinary shares required in connection with the capital raise.
4. That the Directors be and are hereby authorised to undertake all necessary actions to secure the listing and admission to trading of securities issued pursuant to the foregoing resolution on the Official List of the Nigerian Exchange Limited, and/or on any other securities exchange(s) or market(s).
5. That the Directors be and are hereby authorised to appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary, to give effect to the above resolutions, including without limitation, executing necessary documents in connection with the capital raise, determining the final structure of the capital raise, interfacing and complying with the directives of any regulatory authority.
To consider and if thought fit pass the following as ordinary resolutions: That upon completion of the processes for the increase of the Company’s share capital and allotment of the new ordinary shares in accordance with the resolutions above, the Memorandum and Articles of Association of the Company be
amended as necessary to reflect the Company’s new issued share capital.

About the Company

Sovereign Trust Insurance Plc was incorporated as a limited liability company on 26 February 1980 and commenced business on 2 January 1995 as a non-life insurer with an authorized share capital of ₦30 million and a fully paid-up share capital of ₦20 million following the acquisition and recapitalization of the then Grand Union Assurance Limited.

The Company which was licensed to carry out business in all classes of non-life insurance and as special risk insurers currently has authorised share capital of ₦7.5 billion divided into 15 billion units of 50 kobo per share with a paid up capital of ₦7.11 billion (Dec 2023:7.11 billion) divided into 14.23 billion (Dec 2023:14.23 billion) units of 50 kobo per share.

The Company’s corporate head office is at Victoria Island, Lagos with 17 other branches spread across major cities and commercial centers in Nigeria. The Company became a Public Limited Company (PLC) on 7 April 2004 and was listed on the Nigerian Stock Exchange on 29 November 2006.