Sovereign Trust set to raise fresh fund through rights issue

Gearing to build financial capacity for bigger ticket risks, emerging competition and further enhance shareholder value, underwriting firm – Sovereign Trust Insurance plc is set to embark on a new rights issue.

The rights issue, which is due to commence very soon, will put on offer one (1) new ordinary share for every three (3) ordinary shares of 50 kobo each held in the company as of the close of register during the last annual general meeting.

The company board had at its last AGM in Lagos secured the approval of the shareholders to raise additional equity capital by way of special placement or public offer/rights issue or a combination of any of them, targeting at consolidating the ownership of the underwriting firm by its existing shareholders.

In this vein, the board is therefore beckoning on all shareholders to take full advantage of this second opportunity, by fully exercising their rights in the proposed rights issue as a way of consolidating and increasing their stake in the ownership of company. The company, more than ever before, is poised to take the insurance business to a greater height as it gravitates to the next phase of its growth agenda, the management said.

Wale Onaolapo, managing director of Sovereign Trust Insurance, said the management of the company had set a growth agenda aimed at positioning the underwriting firm as one of the top players in the insurance industry, particularly, in the oil and gas sector where it had developed very unique expertise and professionalism.

Onaolopo, joining the board, called on its teeming shareholders to lend total support to the rights issue once it was placed on offer in achieving the various objectives that had been set before the organisation.

The company is committed to creating exceptional value to all its shareholders. “In achieving the huge tasks that have been placed before us, we have identified that a very robust capital base is critical to the success of the set agenda; hence, the need to call on our shareholders to fully exercise their rights by fully subscribing to the rights issue and ultimately grow their investments in the company,” he said.

Sovereign Trust is working assiduously towards being one of the most preferred insurance companies in the country for people to do business with, invest in as well as be the choice employer of labour, he said.

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