Axa Mansard completes capital reconstruction, meets N18 billon requirements
AXA Mansard Insurance Plc, a member of AXA, a global leader in insurance and asset management has announced the conclusion of its regulatory driven share capital increase, following NAICOM’s proposed changes to minimum regulatory requirement on paid-up capital.
The company, having obtained requisite approval from its shareholders at the Extraordinary General Meeting held on 7th December 2020, implemented phase one of the capital increase plan by executing a bonus issue in December 2020.
As a result of the bonus issuance, the company’s share capital increased from N5.25 billion to N18.0 billion and consequently the number of shares outstanding increased from 10.5 billion to 36.0 billion.
This increased number of outstanding shares was expected to lead to increased share register management cost, impact per share metrics and possible wide-ranging implications on future capital raising exercise. To manage the impact of the bonus share issuance, the company implemented the second phase of the 2020 approved scheme after receiving the final sets of regulatory approvals which is a capital reconstruction through par value re-domination. This has led to an increase in the nominal value of shares from N0.50 to N2.00 per share and consequently, reduced the number of outstanding shares from 36 billion units to 9 billion units whilst maintaining the existing shareholding structure.
The share reconstruction was completed on 27th September 2021 and the reconstructed shares have been credited to each shareholder’s account. All shares continue to rank equally in all respects and continue to form a single class of ordinary issued shares of AXA Mansard.
Commenting on the exercise, Ngozi Ola-Israel, the chief financial officer, said. “We strive to provide our shareholders with the best possible return on their investment while also ensuring that we fully optimise the number of shares in stock. The reconstruction done maintains the existing shareholding structure as well as the shareholder value of each of our esteemed shareholders. We are positioned to continue delivering strong earnings with the support of all our stakeholders.
Also, commenting on the capital reconstruction, Kunle Ahmed, chief executive officer, said “We are grateful for the continuous support of our shareholders during this process. We assure you of our dedication to the company’s continued growth and profitability through the continual delivery of exceptional services to our customers. The fundamentals of the business remain extremely strong with an enviable financial capacity that supports our growth ambitions.”