LASACO concludes diversification plans
LASACO Assurance Plc has concluded plans to diversify into other sectors of the economy in order to actualize their vision as a business entity.
Their sectors of interest include hospitality, real estate, and digital world amongst others.
This was disclosed recently by the company’s Managing Director, Mr. Segun Balogun, in a media interview in Lagos.
“The future plan of LASACO is to diversify. Insurers worldwide that are making good returns diversify and not just depend on insurance operations alone to survive. They diversify into other sectors of the economy to augment the income made from insurance. Our post recapitalisation plan is to be a major player in the hospitality, real estate industry and digital world,” he said.
Mr. Balogun said presently the company’s volume of investment in real estate is N3.3 billion, stating that in the next couple of years, “you will see LASACO play in hospitality, real estate and the digital world.”
On the ongoing recapitalization he said the company is working assiduously to ensure that the company is recapitalized and remain afloat.
He said the company’s shareholders are solidly behind their recapitalization plans to raise the required capital.
According to him, “We are also going to offer Rights and do private placements because there are individuals and companies that have shown interest to buy into LASACO. We are currently seeking for approval from the Securities and Exchange Commission to come to the public to raise funds. So, we have very good assurances that the current major shareholders of LASACO will bring money to fulfill the recapitalization plan.
“We also have contingency plans that are very clear and possible, in case of any failure which we don’t expect because we have firm assurances from these major shareholders that they are bringing more money. Mergers and Acquisitions is part of the contingency plan but it will be the last step if there need be because we want to stand alone
“Hence, in summary with respect to recapitalization, we have N4 billion and we are going to N18 billion. So, we are looking for N13.4 billion and we are positive to get it. What we will use the funds to do is to augment our working capital, 30 per cent will be put into the working capital while 70 per cent will be used to expand our investment portfolio and real estate will take a larger bulk.
“It is good enough that the National Insurance Commission (NAICOM) extended the deadline to December 2020. Our plans are to work as if the deadline is June 2020. Thus, by April, 2020, we should be done with our recapitalisation plans,” assured.
