Mutual Benefits gets approval for N2b rights issue

Mutual Benefits Assurance Plc has received approval of the Securities and Exchange Commission (SEC) to go ahead with plans to raise N2billion through right issue towards its five years plan and enhance its financial status.

The insurer will be selling shares to existing shareholders by way of rights issue of 4,000,000,000 ordinary shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary shares.

Shareholders of the company had approved the board proposal to raise additional equity at an Extraordinary General Meeting held in Ibadan on June 27, 2018.

Acceptance List for the rights issue opens on Monday, August 6, 2018, to close on Friday, September 14, 2018, while the rights being offered are tradable on the floor of The Nigerian Stock Exchange for the duration of the programme.

The insurance cVompany, a general business and life insurer, has an authorised share capital of N10 billion with a paid up capital of N4billion.

The company provides insurance coverage across several sectors including aviation, oil and gas, marine cargo and hull business and other non-life insurance underwriting, including motor, fire and special perils, goods-in-transit, engineering insurance, retail and micro insurance, amongst others.

The Chairman, of the company Dr. Akin Ogunbiyi, at a completion board meeting held in Ibadan, Oyo State, said that the proceeds of the offer will be use to fund the Company recapitalisation and growth plan, provision of additional working capital and financing the expansion of IT facilities to support the company enlarged operations.

We will consolidate on the modest achievements recorded in 2017 by commencing our IT transformation blueprint in 2018,î he said, adding that the move will help to eliminate slack time in its processing and ultimately enable them to focus more on customer delights and satisfaction.

Our strategic aspiration is to become the number one insurance company in Nigeria in terms of growth and profitability.

Despite the tough business environment we have been able to bounce back to profitability and delight our shareholders. Dividend of N0.02kobo per share will be paid to our esteemed shareholders who have stood by us over the years, he said.