The board of directors of Prestige Assurance Plc on Friday August 18, 2017 at its 47th, Annual General Meeting (AGM) in Lagos received shareholders’ approval to reduce the issued share capital of the company from N2,685,216,000 to N1,908,705,000 by cancelling and extinguishing 1,553,022,000 of the issued ordinary share of 50 kobo each.
Also the company said it has successfully paid the Dana Air claims which occurred in June 3, 2012, according to the Managing Director Dr Balla Swamy “being a major calamity, we acknowledge the big role played by our parent company The New India Assurance Company Ltd in supporting Prestige Assurance in achieving this feat. Similarly, NAICOM also supported our company in recovering from the local Re-insurers portion of the claim”
Commenting on the share capital reduction, chairman of the company Hassan Usman explained to shareholders that it will enable the company wipe out its accumulated retained losses, reposition the company on a trajectory for subsequent accumulated retained profit, create more value to its shareholders, allow the company declare dividend and improve its perception in the market thereby making it more competitive.
Other details of the share reduction according to the document that was packaged by Planet Capital the financial adviser to Prestige Assurance Plc, shows that the share capital reconstruction entails each shareholder to surrender about eleven shares for every thirty eight held.
While the corresponding reduction in the share capital will be matched by the issuance of bonus shares from the share premium account structured for this purpose where the value of the cancelled shares will be restored, thus ensuring that there’s no loss whatsoever to shareholders.
Photo Caption: Hassan Usman Chairman of Prestige Assurance Plc