Insurance giant, Royal Exchange Plc, has been authorised by the shareholders to raise equity capital of N2.1 billion for the rejuvenation and revival of the company.
The authorisation was given at an extraordinary general meeting of the company held at Ilupeju, Lagos, and presided over by a director, Mr. Adeyinka Ojoraon Thursday. Also in attendance were the Group Coordinator, Mr. Hewett Benson, and Ms. Irene Chukwukelu who represented the company secretary.
The approval will see the directors raising the capital by way of issuing to existing shareholders 3,087,222,044 ordinary shares of 50kobo each based on three new ordinary shares for every five ordinary shares held in the company.
Also, the directors were authorised to fix the price to which the rights issue will be offered to them and resolved that in any event of under-subscription, the directors should raise the equity through private placement. It was also agreed that the remaining unissued shares should be canceled after the Right Issue or private placement.
Benson, excited by the stakeholders’ cooperation, said “the money will be used to rejuvenate and revive the Royal Exchange Plc. It will be used to recapitalise the subsidiaries and take care of other crucial things. I am glad, positive, and happy that the shareholders gave their confidence in the executive to raise the capital for the company.”
