An Insurance company, Consolidated Hallmark Insurance (CHI Plc), has received the approval of Regulators to raise an additional sum of N1,056,900,000 to further beef up its capital base.
The Securities and Exchange Commission gave the approval to the General Insurance and Special Risks underwriter to offer a total of 2,032,500,900 units of 50 kobo each at 52 kobo per share through a Rights Issue to existing shareholders. The offer opened on Monday, 24th February 2020 and is to run for a period of five weeks, with a closing date of 1st April 2020.
Shareholders of the company who were listed on the register of members as at close of business on 3rd February 2020 qualify to take advantage of the offer on the basis of one new share for every existing four units currently being held.
The Rights Issue is one of the series of steps approved by Shareholders of the Company at an Extra-Ordinary General Meeting in November 2019 where the Directors were unanimously given the mandate to embark on various measures to meet the new N10bn required minimum capital base of operators in the general business and special risks category.
The lead issuing house to this offer is Planet Capital Limited, supported by SFS Financial Services Limited and IWorld Financial Services Limited as joint Issuing Houses, while Meristem Registrars acts as the Registrar to the offer.
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Speaking on the recent development in Lagos, The Chairman of the company, Mr Obinna Ekezie, described the recapitalisation program as a welcome development that will lead to a more virile insurance sector.
He added that there would improve performance and also ensure that the company captures a larger market share and give better returns to all stakeholders.
The Managing Director/CEO of Consolidated Hallmark, who is the current President of the Chartered Insurance Institute of Nigeria (CIIN), Mr Eddie Efekoha expressed optimism of a very successful outing based on the keen enthusiasm from shareholders.
“We are very confident about having a successful outing because our shareholders believe in us.
“We have shown a commitment to shareholder value creation and paid dividend time and again,” Eddie said.
He recalled that the company is one of the most consistent dividend-paying publicly quoted firms amongst listed companies generally, and particularly in the insurance sector.
The MD enjoined the shareholders to exercise their rights in full.
Mr Efekoha also said that the company is rapidly expanding its operations into other financial services business with various subsidiaries that are contributing to revenue.
He explained that the latest subsidiary that has been added to the stable is the CHI Microinsurance Limited, a Micro Life Assurance company recently granted approval in principle by NAICOM and set to commence operations by the second quarter of this year.
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