Mutual Benefits secures shareholders approval to raise N4.8bn through private placement

Mutual Benefits Assurance Plc  is embarking on a private placement to raise additional N4.8 billion, from its existing investors who have shown interest to increase their stake to enable the company meet its new capital requirement.

This is to enable the company advance its recapitalisation efforts in compliance with the regulatory requirement set for underwriting companies in the industry.

At the Company’s Extra Ordinary General Meeting in Lagos, Mutual Benefits Board of Directors secured the approval of its shareholders to raise N4.8 billion, by the sale of 8,888,888,889 (eight billion, eight hundred and eighty–eight million, eight hundred and eight-eight thousand, eight hundred and-nine) ordinary shares of 50 kobo each at 54 kobo per share. This is subject to regulatory approvals.

Among the shareholders that have indicated interest to take up the private placements includes Charles Enterprises, Arubiewe Farms Limited.

Chairman of the firm, Akin Ogunbiyi, said given the impact of the COVID-19 Pandemic on the world economies and the negative investors’ sentiments in the stock market, the company has decided to raise the additional capital required by way of private placement of its shares to some existing substantial investors who have indicated their readiness to commit further investment into the company to meet the new minimum regulatory capital.

Managing Director/CEO, Mutual Benefits Assurance Plc, Femi Asenuga, explaining details of the recapitalisation plan, said the Company had planned to conclude every aspect of the exercise before the end of 2020, except for the Covid-19 pandemic.

According to him, plans were to use 2021 to focus on the business and increase shareholder value with payment of dividends.

He assured shareholders that the company was doing everything possible to reward shareholders for their support and patronage in 2021.