Shareholders of Lasaco Assurance Plc have approved a N25 billion capital-raising plan to boost the company’s financial capacity and enhance its competitiveness in the insurance industry.

The approval was granted at an Extraordinary General Meeting held at Lasaco House, where shareholders voted in favour of a combination of private placement and rights issue to increase the firm’s capital base.

This is according to the company’s statement on Wednesday.

According to the resolutions passed, all new shares issued will rank pari passu with the existing ordinary shares, ensuring equal rights and privileges for all investors.

The meeting also authorised the board to determine the modalities of the capital raise, appoint professional advisers and secure the required regulatory approvals.

The company’s memorandum and articles of association are also to be amended to reflect the revised capital structure.

Reacting to the successful approval, Maria Olateju Phillips, chairman of Lasaco Assurance, restated the strategic importance of the capital raise for the company’s future.

She said, “This exercise will enable us to meet the regulatory requirement and also aid our competitive stand as a company. We are great custodians of investments of the shareholders, and they will be quite impressed that we want to forge ahead like this.

“In the long run, what is the future prospect? Once your yield and return are great, the shareholders will be impressed.”

Speaking on the company’s position on the ongoing recapitalisation exercise in the insurance industry, the acting managing director of the company, Ademoye Shobo, said,” Our recapitalisation plan confirms our commitment to continue operating life and non-life businesses.

“We have invested heavily in technology and in our people, and with the new funds, we will further expand and strengthen our position. We will be recapitalised beyond the regulatory minimum.” 

(NAN)