Consolidated Hallmark shareholders approve N5.6bn capital raise

SHAREHOLDERS of Consolidated Hallmark Insurance Plc have approved the request made by board of directors of the company to source for additional funds of up to N5.6 billion.

The approval was given at the Extra-Ordinary General Meeting of Consolidated Hallmark Insurance on Thursday  in Lagos.

The fresh capital raising would be of two parts; N1.057 billion rights issue and N4.500 billion, which could be sourced for through rights issue, private/public, special offering or any other means considered appropriate by the board.

Before the total fresh capital raising of the N5.557 billion was approved, shareholders had first authorised the creation of additional 5 billion ordinary shares of 50 kobo each of the company. This was done by increasing the authorised share capital to N10 billion divided into 20 billion ordinary shares of 50 kobo from N7.5 billion divided into 15 billion ordinary shares of 50 kobo each.

After the approval for the creation of the new shares, the company’s investors passed a resolution to approve that the board was “authorised to raise additional capital of up to N1.057 billion through a rights issue of 2,032,500,000 units to the ratio of 1:4 at 52 kobo per share, on such terms and conditions and on such dates as may be determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.”

The shareholders also approved that the board was allowed to “raise whether by way of private/public, special offering, right issue or a combination or any other method(s) they deem fit, additional capital of up to N4.500 billion or its equivalent whether locally or internationally or a combination of both, through the issuance of shares, long-term debt, preference shares (redeemable or any other instrument(s), whether as a standalone transaction, or a combination which may be determined by the directors for such consideration and upon such terms and conditions as the directors may deem fit, subject to obtaining the approvals of relevant regulatory authorities.”

In addition, the board was authorised to begin “discussion on possible mergers and acquisition as the directors deem fit, subject to obtaining the approvals of relevant regulatory authorities.”