By InvestAdvocate
Lagos (INVESTADVOCATE)-Insurer, Sovereign Trust Insurance Plc’s N1.15 billion rights issue will close Friday February 20, 2015, according to offer’s circular made available to InvestAdvocate.
The insurer on January 14 opened application and offered to existing shareholders 2,290,585,798 Ordinary Shares of 50 kobo each at N0.50 per Share.
Sovereign Trust says provisional allotment is one (1) new ordinary share for every three (3) ordinary shares of 50 Kobo each held as at the close of business on Friday, 30 May, 2014.
According to company, the purpose of the rights issue is to provide the company with the required funds that will enhance its growth and profitability.
Sovereign Trust said 50 percent of proceeds will be used to fortify investment assets, 30 percent for the repayment of Daewoo bond and 20 percent will be used to enhance the insurer’s working capital.
These represents in figure terms N555 million for enhancement of investment portfolio, repayment of Daewoo bond is N333 million and while working capital is 222 million; indicating a net issue proceeds estimated at N1,109 billion after deducting the total cost of the Issue estimated at N36,076 million (representing 3.15 percent of the Issue).
The rights issue circular says after acceptance list closes, receiving agents are scheduled to make returns on March 06, while on March 19, forward allotment proposal would be sent to the Securities and Exchange Commission (SEC).
Sovereign Trust added that the company is expected to get SEC’s clearance of the allotment on April 09, while allotment announcement would be made April 16, 2015.
“Shares allotted pursuant to the Issue will be credited to the CSCS accounts of successful not later than 15 working days from the date of allotment. Shareholders are thereby advised to state the name of their respective stockbrokers and their Clearing House Numbers in the relevant spaces on the Acceptance Form. Certificates of shareholders that do not provide their CSCS account details will be dispatched by registered post not later than 15 working days from the date of allotment, the circular affirmed.
Lead Issuing House to the fund raiser is FCMB Capital Market Ltd, while Joint Issuing House is Cordros Capital Ltd.
