AXA Mansard Insurance Plc (NSE – MANSARD) has provided further clarification and timeline to its bonus share issuance and share reconstruction by the company.
AXA Mansard shareholders had in the Extra-Ordinary General Meeting (“EGM”) held on Monday, December 7, 2020, approved the increase in share capital, issuance of bonus shares and the share capital reconstruction of the Company.
The share price of AXA Mansard was adjusted on December 15, 2020, to N0.64 per share, post bonus share issuance.
Before the share bonus issuance, MANSARD had 10,500,000,000 shares and issued 25,500,000,000 bonus shares on the basis of 17 new shares for every 7 shares held. Thus, bringing the total number of shares to 36,000,000,000
Effect of share reconstruction on shareholders
The Company will also be effecting a reconstruction of the nominal value of the shares, from N0.50, to N2.00, following the bonus issuance. This will address the concern of having a large number of shares in issue, 36 billion shares, post the bonus issuance, according to AXA Mansard.
The share reconstruction will allow for a reduction in the number of shares outstanding to 9 billion.
Upon conclusion of the reconstruction process, the closing share price as at the date before the reconstruction is effected by the NSE will be multiplied by 4, to reflect the scale of the reconstruction/redenomination in nominal/par share value from N0.50k to N2.00k.
This will also result in the total number of shares outstanding being divided by 4, to also reflect the redenomination scale in nominal value, with the total shares outstanding being reduced from 36 billion shares (divided by 4) to 9 billion.
Timeline for completion
Indicative timeline completion of bonus shares issuance and share reconstruction as provided by AXA Mansard is as follows. However, the dates given are indicative only and are subject to change, depending on the actual timelines within which the requisite regulatory approvals are secured.
December 30, 2020 – Receive SEC approval of registration of bonus shares for allotment to AXA shareholders.
December 31, 2020 – Credit of bonus share to CSCS accounts of shareholders
January 6, 2021 – Submit an application to CAC for approval of share reconstruction.
January 20, 2021 – Receive CAC approval of share reconstruction.
January 21, 2021 – Submit an application to SEC for approval of share reconstruction.
February 4, 2021 – Receive SEC for approval of share reconstruction
February 9, 2021 – Share reconstruction effected on NSE
At the close of trading on Wednesday, the equity price of AXA Mansard dipped by 3.00% to N0.97 per share. Nevertheless, MANSARD is up by 49.25% since its price adjustment.
About the company
The Company was incorporated on 23 June 1989 as a private limited liability company called “Heritage Assurance Limited” and issued with a composite insurance license by the National Insurance Commission in March 2004.
The Company’s name was changed to Guaranty Trust Assurance Limited in September 2004 following the acquisition of a majority share holding by Guaranty Trust Bank Plc, and changed again to Guaranty Trust Assurance Plc in March 2006 following the increase in number of members beyond the maximum required for a private company. In November 2009, the Company became listed on the Nigerian Stock Exchange.
The beneficial ownership of the Company changed to Societe Beaujon S.A.S (AXA S.A) in December 2014 by the acquisition of 100% of Assur Africa Holding (AAH). The Company modified its name and corporate identity to AXA Mansard Insurance Plc in July 2015.
The principal activity continues to be the provision of life and general business risk management solutions and financial services to corporate and retail customers in Nigeria.
The Company has two wholly owned and two partly owned subsidiaries: AXA Mansard Investments Limited, AXA Mansard Health Limited, AXA Mansard Pensions Limited and APD Limited a special purpose company which is now an indirect subsidiary.
AXA Mansard Investments Limited was incorporated as a private limited liability company on 9 January 2008 and its principal activity involves provision of portfolio management services to both individual and corporate clients.
AXA Mansard Health Limited was incorporated as a private limited liability company on the 7th of August 2003 and its principal activities is to manage the provision of health care services through health care providers and for that purpose accredited with the National Health Insurance Scheme.
APD Limited was incorporated on 2 September 2010 for the purpose of leasing, holding and developing the Company’s commercial property located at Plot 928A/B, Bishop Aboyade Cole Street, Victoria Island, Lagos to an ultra modern office structure.
AXA Mansard Pensions Limited was incorporated on 1 February 2005 as a private limited liability company. The Company’s name was changed to AXA Mansard Pensions Limited in June 2015 following the acquisition of the majority share holding of the company by AXA Mansard Insurance Plc. in January 2015.
The Company’s principal activity continues to be the administration and management of Pension Fund Assets in line with the provisions of the Pension Reform Act 2014 and the relevant National Pension Commission circulars
By: Ifunanya Ikueze