As the next Annual General Meeting approaches, the management of Lasaco Assurance Plc planned to raise additional capital of up to 40 billion shares of 50k each by way of public offer, private placement or preference shares. This the board communicated through a document released through the exchange.
To achieve the recapitalization process, the Authorized share capital of the company shall first be increased from 10 billion to 50 billion by the creation of additional 40 billion ordinary shares of 50k each, this shall have same status in all respect with the existing ordinary shares of the company.
Although the court order by Justice Hassan of the Federal High Court sitting in Lagos had restrained NAICOM from implementing the Tier Based Recapitalization structure, until after the expiration of the 30 days pre-action notice which shareholders of insurance companies served the Commission on the 6th of September, 2018. We are of the opinion that this is a step taken to properly position the insurance firm for the recapitalization.