Sovereign Trust Insurance Plc, (STI) shareholders on Thursday July 25, 2019, gave their approval to the request of the board of directors to increase the amount forming the authorized share capital from N10 billion to N15 billion, by the creation of ten billion ordinary shares of 50 kobo each ranking pari passu in all respects with the existing ordinary shares of the company.
This was one of the major highlight of the special business at the company’s 24th, Annual General Meeting (AGM) in Lagos. Also the shareholders approved that in the event of over subscription of the offer/issue, to capitalize the excess money and allot additional shares to the extent that can be accommodated by the company’s unissued share capital, subject to regulatory authorities’ approval.
Commenting on shareholders questions concerning the company recapitalization plans and the National Insurance Commission (NAICOM) deadline for insurance companies in the country to increase their share capital, Chairman of the company Oluseun Ajayi explained that the mandate to scale up their capital base is already at an advanced stage.
“Our program for capitalization will take off with the issuance of Rights to existing shareholders. According to the schedule, we will be issuing a total of 4,170,411,648 ordinary shares to our esteemed shareholders. This is expected to be finalized by the third quarter of 2019”. While he urged all shareholders to pick up their rights.
He added that other capital raising options as advised by their financial adviser will be considered in the course of the year. “This is basically to ensure that our company is set on a very solid and competitive platform in the industry”.
On the company future, Ajayi said “changes in our business environment present uncommon opportunities for operators. We shall continue to deploy several initiatives and strategies to address any industry challenges while harnessing the inherent opportunities”.
Sovereign Trust Insurance Plc commenced business in January 1995 following the restructuring and recapitalization of the then Grand Union assurances Limited. It currently operate through a network of branches Nationwide with our Head Office in Lagos.
The company is licensed as an insurer by the Federal Government with authority to underwrite all Classes of Non-Life business. Currently, its authorized share capital is N5.25Billion divided into 10.5 billion units of 50 kobo per share. With a fully paid-up capital and Shareholders’ funds of over N3.4 Billion. The ownership of the company is made up of diverse shareholders from different walks of life.