To comply with the ongoing recapitalisation exercise in the insurance industry, Guinea Insurance Plc has increased its authorized share capital from N4 billion to N12 billion in line with its plan.
Guinea got its shareholders approval to this effect at the Company’s 61st Annual General Meeting held in Uyo, Akwa Ibom State.
Underwriting companies in the country was give June 30th, 2020 deadline by National Insurance Commission (NAICOM) to comply with new capital regime.
With the approval, the underwriting firm hopes to increase its Authorised Share Capital from N4,000, 000,000 to N12,000,000,000 by the addition of the sum of N8,000,000,000 divided into 16,000,000,000 ordinary shares of 50 kobo each ranking in all respect with the existing shares of the Company.
Godson Ugochukwu, chairman board of directors said at the meeting that “the approval, as given by our respective shareholders, brings to the table penetrating insights and sustainable action plans that will bolster our get-up-and-go capital structure reorganisation actions.
According to him, options available to us are either to: approach the capital market by way of a public offer, private placements, rights issue, book building process or other methods; inject funds into the Company or consider the possibility of a merger with another company operating in the general insurance business portfolio.
“In any case, the Board had engaged the services of professional parties and advisors to provide matter-of-fact counsel that will engender accuracy and timely decision making especially, as we are materially mindful of the stipulated time frame given by the regulator”.”
Meanwhile, Ademola Abidogun’s appointment as managing director/CEO of Guinea Insurance was unanimously ratified by shareholders of the Company while also acknowledging his numerous years’ experience in providing strategic and operational leadership in uniquely challenging situations in the insurance industry.