Securities and Exchange Commission (SEC) has approved a further extension of the offer period of Sovereign Trust Insurance Plc’s Rights Issue of 4,170,411,648 ordinary shares of N0.50 each at N0.50 per share on the basis of one (1) new ordinary share for every two (2) ordinary shares (the Offer) held as at 15 January 2019. With this SEC’s approval, the Offer initially scheduled to close on Wednesday, 31 July 2019 will now close on Wednesday, 21 August 2019
The Offer which opened for subscription on the 24th June, 2019 was issued at a premium to the market price. A comparison of the current market price of Sovereign Trust Insurance Plc (which stood at N0.23 on June 28th, 2019), and the offer price of N0.50 for the rights, shows that the rights are being issued at a premium. Will its existing shareholders maintain their proportion of the company by taking up their respective rights? This can only be confirmed at the conclusion of the offer.