Mutual Benefits to recapitalise through private placement

Mutual Benefits Assurance Plc has said it intend to capitalise its operation through private placement. As a result it plans to increase its authorised share capital to N10.05 billion by the creation of 100 million additional ordinary shares of 50k each.

Mr Jide Ibitayo, Company Secretary of the firm, said this in a notice of Extra-Ordinary General Meeting scheduled for Dec. 3 which was posted on the website of the Nigerian Stock Exchange. The notice added that shareholders would be required at the meeting to authorise the directors to raise additional capital via the issue of debt or equity or a combination of both, including redeemable convertible bonds, loan stock, bonds with options, whether by way of private placement.

The company, according to the notice, is seeking to raise additional capital of ₦4.80 billion by way of private placement.“Subject to obtaining the regulatory approvals, the private placement shall be by way of sale of 8,888,888,889 ordinary shares of 50k each of the company at the rate of 54k per share,” it said.The company said that the private placement would be sold to Charles Enterprises LLC  and Arubiewe Farms Ltd. It also said that a total of 5,331,044,445 units at ₦2,878,764,000.24 would be sold to Charles Enterprises LLC, while 3,557,844,444 units at ₦1,921,235.999.76 would be sold to Arubiewe Farms Ltd.The company said that the additional capital would enable it to meet the new minimum share capital prescribed by the regulator.

“Given the impact of the COVID-19 pandemic on world economies and the negative investors’ sentiments in the stock market, the company has decided to raise the additional capital required by way of Private Placement of its shares to some existing substantial investors who have indicated their readiness to commit further investment into the company to meet the new minimum regulatory capital,’’ it said. The National Insurance Commission had on May 20, 2019 raised the minimum Paid-Up Share Capital of insurance companies providing general insurance to N10 billion. The company seeks to raise additional capital to meet the new minimum share capital prescribed by the regulator.