AIICO Insurance Plc (NSE – AIICO) has changed the date of its bonus share qualification dates to December 28, 2020. AIICO had previously announced two separate bonus shares for its shareholders – a bonus of 1 for 5 shares with the qualification date set as 23 September 2020, and an additional bonus of 1 for 5 shares held with the qualification date set as 30 November 2020.
However, at the 50th Annual General Meeting of the company held on December 8, 2020, it was resolved that the qualification dates be postponed to December 28, 2020, so that the Rights shares issued by the company would qualify for the bonus.
Also, at the meeting, it was resolved that the first bonus issue of 1 for 5 shares be reduced to 1 for 8 shares.
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This is according to the corporate action statement filed by AIICO Insurance Plc with the Nigerian Stock Exchange and signed by Donald Kanu, Company Secretary.
The statement read in part: “At the 50th Annual General Meeting of AIICO Insurance Plc (the Company) held at Radisson Blu Hotel, 38 – 4, Isaac John Street, Ikeja, Lagos on Tuesday, December 8, 2020, the following resolutions were duly passed:
“Amendment to Resolution 2.1 – The initial resolution 2.1 had September 23, 2020, as the Qualification date. This meant that the Rights shares would not qualify as they had not been listed as of that date. Therefore, for this resolution, the Board proposed to move the qualification date from 23 September 2020 to 28 December 2020 so that the Rights shares will qualify. Board further proposed a reduction in the number of bonus shares from 1 for 5 to 1 for 8. This is to ensure that AIICO could adequately pay this bonus from our opening retained earnings.
“Amendment to Resolution 2.2 – The initial resolution 2.2 had November 30, 2020, as the Qualification date. This meant that the Rights shares would not qualify as they were also not listed as of that day. Hence, we are proposing to also move the qualification date from November 30, 2020, to 28 December 2020 as we expect that the Rights shares would have been listed as of that date. This bonus of 1 for 5 shares are to be paid from the share premium account.
“The declaration of 1 (one) bonus share for every 8 (eight) ordinary shares held by existing shareholders of the Company as at December 28, 2020, to be paid from retained earnings. And Additional declaration of 1 (one) bonus share for every 5 (five) ordinary shares held by existing shareholders of the company as at December 28, 2020, to be paid from the share premium account. 409 voted in favour and 3 voted against.
“That the authorized share capital of the Company be and is hereby increased from N18,000,000,000.00 to N20,000,000,000, by the creation of additional 4,000,000,000 ordinary shares of N0.50 Kobo each, ranking pari passu in all respects with the existing ordinary shares of the Company, and that the capital clause of the Memorandum and Articles of Association of the Company, be altered accordingly and that the Board be and is hereby authorized to take all necessary steps to give effect to the aforementioned resolutions.”
At the close of trading on Friday, the equity price of AIICO Insurance Plc closed flat at N1.05 per share.
By: Ifunanya Ikueze