WorldStage– Coronation Insurance Plc authorized on April 24 an issue of shares worth N9.3 billion through a private placement to meet the N25 billion new capital base requirement in the run up to the July deadline.
The company, one of Nigeria’s full-line insurers, is N10.2 billion short of the N25 billion the National Insurance Commission(NAICOM) set as the new minimum capital base for that category.
In March, Coronation sealed a N4.8 billion deal in private with Access Holding, selling the bank over 21 million units of its shares.
In a disclosure of the new deal in its extra-ordinary general meeting that held on Friday, the company’s board of directors said the amount represents a combination ₦9 billion for the shares, and ₦257 million for the cost of issuance.
“The new ordinary shares will sell for ₦2.16 per share to one or more investors in such tranches and on such terms and conditions as shall be determined by the Board,” the company disclosed.
The board of directors will finalize the terms and timeline for the private placement, and approve the list of the private investors.
NAICOM has compelled insurance companies in Nigeria to shore up their capital bases according to their categories.It is enforcing this latest by July 31.
