By InvestAdvocate

Lagos (INVESTADVOCATE) – Royal Exchange Plc Group operating in the Insurance Sector of the Nigerian Stock Exchange (NSE) on Wednesday said it would restructure the Capital of Royal Exchange Prudential Life Plc by cancelling N3, 668,869,440.00 book debt in the Revenue Reserve Account from its Share Premium Account (SPA).

This was contained in a Notice to the Nigeria’s Exchange Wednesday and obtained by InvestAdvocate in Lagos Nigeria.

The Company in the notice to the Exchange affirmed that Royal Exchange Life is a Public Company registered pursuant to the provisions of the Companies and Allied Matters Act (CAMA) 2004. “The Company as an establishment carries on the business of general insurance under the Royal Exchange Plc. Group” the notice said.

“As a private entity the company’s shares are not listed on the Exchange, however the parent company’s shares are. The company is therefore proposing to undertake a capital restructuring transaction” the notice said.

According to Royal Exchange, the capital restructuring is by way of cancellation of N3, 668,869,440.00 book debt in the Revenue Reserve Account from its Share Premium Account (SPA) of N4, 081,606,334.00 as indicated in its Balance Sheet.

“The proposed transaction is expected to leave a balance of N414, 736.00 in the SPA of the company” the notice said.

Royal Exchange further affirmed that the proposed capital restructuring is fully allowed by law under the provisions of sections 106 -120 of the CAMA and the Firm intends to undertake the restructuring following the procedure outlined in the law including seeking and obtaining the sanction of the shareholders of the company and of the Federal High Court as stipulated by CAMA.

“The National Insurance Commission (NAICOM) has also been informed” it said.

Also, the Company says that capital restructuring is intended to deliver real benefits to shareholders as well as to clean up the books of the company and will not involve any distribution or repayment of Capital by the Company to any shareholder or other person, and will not affect it’s Net Asset position.