Mutual Benefits Assurance Plc (NSE – MBENEFIT) is set to hold an Extra-Ordinary General Meeting (EGM) to discuss among others things the raising of N4.8 billion additional capital by a way of Private Placement of the ordinary shares of the Company (8,888,888,889 units) at 54 kobo per share.
and the increase of the Authorized Share Capital of the Company from N10 billion to N10.05 billion.
The Company seeks to raise additional capital to meet the new minimum share capital prescribed by the Regulator, National Insurance Commission (NAICOM)
The meeting is scheduled to be held at The Providence, 12A, Oba Akinjobi Way Ikeja, GRA, Lagos on Thursday 3rd December 2020 at 9.00 am.
This is according to a corporate action disclosure filed by the company to the Nigerian Stock Exchange (NSE) signed by Jide Ibitayo, the Company Secretary.
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The filing read in part “That pursuant to Article 35 of the Articles of Association, the Authorized Share Capital of the Company be and is hereby increased from N10,000, 000,000 (Ten Billion Naira) to N10,050,000,000 (Ten Billion, Fifty Million Naira) by the creation of 100, 000, 000 (One Hundred Million) additional Ordinary shares of 50 kobo each ranking parri passu in all respects with the existing Ordinary Shares of the Company”
“That the Directors be and are hereby authorized to raise additional capital of ₦4,800,000,000.00 (Four Billion, Eight Hundred Million Naira Only) by way of Private Placement of the ordinary shares of the Company (‘Private Placement’)”
“That subject to obtaining the regulatory approvals, the Private Placement shall be by way of sale of 8,888,888,889 (Eight Billion, Eight Hundred & Eighty-Eight Million, Eight Hundred & Eighty-Eight Thousand, Eight Hundred & Eighty-Nine) ordinary shares of 50 kobo each of the Company at the rate of 54 kobo per share as follows:
- Charles Enterprises LLC – 5,331,044,445 shares worth ₦2,878,764,000.24
- Arubiewe Farms Ltd – 3,557,844,444 shares worth ₦1,921,235.999.76
At the close of trading on Wednesday, the equity price of Mutual Benefits Assurance Plc closed flat at 22 kobo per share on the floor The Exchange. YTD the share price is up 10%, having settled at an average price of 20 kobo per share from September 2019 to April 2020. In five years, the share price is down 56%.
NAICOM had in a circular referenced NAICOM/DPR/ CIR/25/2019 dated 20th May 2019 raised the minimum Paid-Up Share Capital of insurance companies providing general insurance to N10,000,000,000 (Ten Billion Naira).
The EGM will be broadcast live to enable shareholders and other stakeholders who will not be attending physically to view the proceedings. The link for the EGM broadcast will be made available on the Company’s website.
By; Ifunanya Ikueze