AXA Mansard reduces shares by 50% in reconstruction move

Shareholders of AXA Mansard Insurance Plc will now hold 75 percent less the quantity of shares they previously held in the company following a successful share construction by the company.

However, the value of each unit of share of the company is now N2 from the previous N0.50.

A notice to the company’s shareholders by Mrs. Omowunmi Mabel Adewusi, the Company Secretary said following the Extraordinary General Meeting of AXA Mansard held on Monday, 0 December 2020, the Company secured the approval of its shareholders for the share reconstruction/ redenomination of AXA Mansard’s shares from a nominal share value of N0.50 to N2.00.

The notice further stated that following the shareholders’ approval, the Company also received necessary regulatory approvals from the National Insurance Commission (NAICOM) on Monday, 19 July 2021, and the Securities & Exchange Commission (SEC) on Monday, 16 August 2021 respectively.

“In order to effect the share capital reconstruction, the shares of the Company will be suspended from trading on the Nigerian Exchange Limited on Thursday, 9 September 2021, so that the shareholders’ register can be updated with the reconstructed shares. Once this is concluded, the suspension will be lifted and trading on the shares shall recommence,” the notice stated.

What this means is that the total shares outstanding would be reduced by 75%, in which case every four ordinary shares of N0.50k held would be restructured into one ordinary share of N2.00k each. If you currently have one million units, you will henceforth have 250k units of N2.00k each. Both the EPS and the book value per share would increase.

Speaking on the market leader in the insurance sector award it got at the recent Marketing Edge Awards event, Chief Customer and Marketing Officer, AXA Mansard, Jumoke Odunlami, said, “We are thrilled to be recognised as a market leader within the country’s insurance space. The business offering is to protect people over the long term and in the business, trust and solid relationships are paramount.”

At the end of trading on Wednesday, Mansard’s stock value dropped by N5, opening at N88 and closing at N83 on the Nigerian Exchange (NGX). In 112 transactions, the stock traded 9,198,288 shares valued at N779,412.78.