The Consolidated Hallmark Insurance (CHI) has received the approval of the Securities and Exchange Commission (SEC) to raise an additional sum of N1,056,900,000 to further beef up its capital base.
The Securities and Exchange Commission gave the approval to the General Insurance and Special Risks underwriter to offer a total of 2,032,500,900 units of 50 kobo each at 52 kobo per share through a Rights Issue to existing shareholders. The offer opened on Monday, 24th February, 2020 and is to run for a period of five weeks, with closing date of 1st April, 2020.
Information obtained from the company showed that shareholders of the company who were listed on the register of members as at close of business on 3rd February, 2020 qualify to take advantage of the offer on the basis of one new share for every existing four units currently being held.
The Rights Issue is one of the series of steps approved by Shareholders of the Company at an Extra-Ordinary General Meeting in November, 2019 where the Directors were unanimously given the mandate to embark on various measures to meet the new N10bn required minimum capital base of operators in the general business and special risks category.
The Chairman of the company, Mr. Obinna Ekezie, sees the recapitalisation program as a welcome development that will lead to a more virile insurance sector with improved performance and also ensure that the company captures a larger market share and give better returns to all stakeholders.
The Managing Director/CEO of Consolidated Hallmark who is the current President of the Chartered Insurance Institute of Nigeria (CIIN), Mr. Eddie Efekoha, is optimistic of a very successful outing based on the keen enthusiasm from shareholders.
According to him, “we are very confident of having a successful outing because our shareholders believe in us. We have shown commitment to shareholder value creation and paid dividend time and again.”