Standard Alliance Insurance Announces Share Reconstruction
In line with its corporate strategy and growth plan aimed at maximizing shareholder value in the near term, Standard Alliance Insurance PLC has announced that it will embark on share reconstruction to enable management and board reposition the company, create more value to its shareholders, allow the company declare dividend and improve its standing in the market place.
According to the company, share reconstruction, also known as reverse stock split, will enable the company to reduce the number of its outstanding shares and increase its share price proportionately without affecting the total book value of those shares.
Speaking after the AGM, the Group Managing Director of Standard Alliance Plc, Mr. Bode Akinboye, who returned to SA in December 2014 after leaving the company as GMD in 2009, said the share construction was the third point of his four-point transformation project anchored on people, processes and product.
“The first point of the transformation is clearing all outstanding regulatory issues with the National Insurance Commission, the Securities and Exchange Commission and the Nigerian Stock Exchange, which has been successfully concluded.
“The second point is the merger of Standard Life Assurance and Standard Alliance Insurance to form a composite insurance company which has also been concluded. After the conclusion of the share Capital /Balance sheet Restructuring, we shall move to the last of the four-point agenda which is to raise fresh capital to enable Standard Alliance become a bigger player in the insurance market,” he said.
Akinboye explained that fresh capital might be raised through loan issuance, debt issuance, equity issuance, convertible shares issuance or preference shares issuance both from local and international investors. Technical partners will also come on board if necessary. He adds: “Our focus will be on developing our competitive advantages to emerge as a stronger, sharper, safer and stronger insurance company. As external forces continue to reshape our businesses, we are optimistic about the company’s growth prospects in the years ahead,” he concluded.
Standard Alliance Insurance Plc is a high profile, technology-driven and customer-oriented company ranking among the best and most respected insurance companies in Nigeria, both in terms of product and service delivery. SA Insurance Plc is licensed by the National Insurance Commission, NAICOM, to transact general and special risk insurance businesses.
The company was incorporated in July 1981 as a Private Limited Liability Company and commenced full operations in 1982 under the name Jubilee Insurance Company Limited. The name was changed to Standard Alliance Insurance Company Limited (Standard Alliance) in August 1996. Standard Alliance became a Public Liability Company (Plc) on 30th May, 2002 and was quoted on the Nigerian Stock Exchange in December 2003.