Friday, 1 August 2014

Sovereign Trust Insurance to raise N1.1bn from rights issue


Chuks Udo Okonta
Sovereign Trust Insurance Plc has announced its intentions of raising additional capital of about N1.1 billion from existing shareholders through a rights issue.

A statement by the company’s Head of Corporate Communications and Brand Management Department, Segun Bankole, said the rights issue is a necessary step towards accomplishing its five year strategic blue-print which amongst others, will reinforce its competitiveness in the Nigerian Market and improve its market share.

The company is placing on offer by way of rights, 2,290,585,798 (Two Billion Two Hundred and Ninety Million, Five Hundred and Eighty-Five Thousand, Seven Hundred and Ninety-Five) ordinary shares of 50 kobo each at 50 kobo per share on the basis of one (1) new ordinary share for every three (3) ordinary shares of 50 kobo each subject to approval of the Securities & Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).

The principal activity of the Company continues to be the provision of all classes of non-life insurance and special risk insurance and the fundamentals of its business remain solid.

While commenting, the Managing Director/Chief Executive Officer, Wale Onaolapo, also encouraged existing shareholders in the company to see this as a vista of opportunity to take up their rights during the offer and buy into the growth objectives of the company.

He said that in addition to ensuring the actualisation of the company’s goals, the exercise will further boost the aspiration of the company to creating exceptional values for all its stakeholders. In his word, “in achieving the huge tasks that have been placed before us, we have identified that a very robust capital base is critical to the realization of our strategic objectives, hence the need to call on Shareholders to exercise their rights when it eventually opens.

In today’s challenging economic environment, the company is continually poised to enhancing its capital structure and fortifying its investments portfolio for better positioning in taking advantage of the burgeoning opportunities in the Nigerian Insurance Industry. Sovereign Trust Insurance Plc has been growing its business in the last five years, achieving outstanding revenue growth and delivering superior profitability.

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