Shareholders of Guinea Insurance Plc have approved a plan to raise up to N15 billion in additional equity as part of a comprehensive recapitalisation programme aimed at strengthening the company’s financial position.
The approval was granted during an Extraordinary General Meeting held virtually in Lagos on Monday, in line with the Business Facilitation (Miscellaneous Provisions) Act 2022 and the Companies and Allied Matters Act (CAMA) 2020.
As part of the resolutions, shareholders approved an increase in the company’s minimum issued share capital from N4 billion, comprising N8 billion ordinary shares of 50 kobo each, to N19 billion, comprising N38 billion ordinary shares of 50 kobo each. They also endorsed a plan to raise up to N15 billion in additional equity through a mix of rights issues and private placements.
Speaking at the meeting, the Chairman of the Board, Temitope Borishade, described the approval of the recapitalisation plan as a key milestone in the company’s transformation journey. He noted that the capital raise would strengthen the company’s balance sheet, restore its statutory capital position, enhance its underwriting capacity, and support its long-term growth strategies.
Mr Borishade said, “The overwhelming support of our shareholders reflects their confidence in the Board and Management’s strategy to rebuild Guinea Insurance Plc into a stronger, more resilient, and more competitive insurer. This recapitalisation plan is not only a regulatory requirement but also a strategic opportunity to create sustainable value for all our stakeholders.”
The board reaffirmed its commitment to transparency, strong governance, and the prudent use of the capital to be raised, stating that it would work closely with regulators and professional advisers throughout the process.
This development underscores the company’s dedication to building a forward-looking insurer capable of meeting the expectations of policyholders, investors, regulators, and partners, while supporting wider economic activity and ensuring sustainable returns to shareholders.
With all resolutions approved, Guinea Insurance Plc will now proceed with the required regulatory filings and steps to implement the rights issue and private placement.
