Standard Alliance Insurance Plc has unveiled plans to convert its N12bn debt into equity as part of a broader capital restructuring strategy.
The company also intends to change its name to Fortis Global Insurance Plc, subject to regulatory approvals.
In a statement filed on the Nigeria Exchange Limited recently, the company disclosed that the debt-to-equity conversion follows a Convertible Facility Agreement, allowing the company to issue and allot up to 15 billion ordinary shares of 50 kobo each to settle the debt.
“The company is hereby authorised to convert into ordinary equity N12bn under the Convertible Facility Agreement and issue shares in full and final discharge of all obligations owed,” read the statement.
As part of its restructuring, Standard Alliance Insurance will also consolidate and subdivide its existing shares. The process involves reducing its 14 billion ordinary shares of 50 kobo each to 1.75 billion shares of N1 each, before increasing its capital to 30 billion ordinary shares of 50 kobo each through fresh issuance.
Additionally, the company has proposed a waiver of shareholders’ pre-emption rights on newly created shares, allowing the board to issue them at their discretion, subject to legal and regulatory approvals.
According to the statement, beyond the financial restructuring, the company’s rebranding to Fortis Global Insurance Plc aims to reflect its evolving corporate identity. The name change will be accompanied by amendments to its Memorandum and Articles of Association to align with the new structure.
The company further revealed plans for a potential corporate reorganisation, which may involve transforming into a holding company, divesting business units, or engaging in mergers and acquisitions.
The PUNCH reported that Endura Investment Global Limited has announced that it has acquired a 24 per cent controlling shareholding in Standard Alliance Insurance Plc and appointed a new board to oversee the affairs of the insurance firm.