Capital Reconstruction: NSE Halts Trading in Prestige Assurance Shares
The Nigerian Stock Exchange (NSE) last Friday placed the shares of Prestige Assurance Plc on full suspension to enable the Company’s Registrars update the register of shareholders for the planned share capital reconstruction of the company.
This implies that there will not be trading in the shares of the insurance firm for now. Prestige Assurance had last year made an application to the NSE for a “No Objection” to its proposal to reduce the company’s share capital from N2, 685,216,000 being 5,370,432,000 ordinary shares of 50 kobo each to N1, 908,705,000 being 3,817,410,000 ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the Company.
According to the company, the share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets.
Prestige Assurance had explained that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776, 511,000.
It added that the reconstruction will reposition the company on a trajectory for subsequent accumulated retained profit, create more value to its shareholders, allow the company to declare dividend and improve its perception in the market thereby making it more competitive.
The management of Prestige Assurance Plc late last year told the capital market community of strategic initiatives being taken that would ensure sustained growth over the next five years.
According to the company’s forecasts, pre-tax profit is expected to rise to N877 million by the end of 2017 and thereafter rise consecutively to N8.08 billion by 2021. Profit after tax is expected to increase to N596 million in 2017 and N2.09 billion in 2021.
Chief Financial Officer, Prestige Assurance Plc, Mr. Oluwadare Emmanuel, said the company’s strategic growth plan focused on prompt payment of claims to customers and dividend payment to shareholders.
He disclosed that the company has restructured its balance sheet in order to be able to make dividend payments while it has implemented many digital transformation initiatives and robust software to ensure prompt claims payment.