Chuks Udo Okonta
Sovereign Trust
Insurance Plc has announced its intentions of raising additional capital of
about
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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