C & I Leasing Plc Extends Rights Issue to January 13, 2020

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Goddy Egene

Shareholders of C & I Leasing Plc, who are yet to take up their rights have opportunity to so as the issue has been extended to January 13, 2020.

The company is making a rights issue of 539,003,333 ordinary shares of N0.50 each at N6.00 per share, on the basis of four new ordinary shares for every three ordinary shares held. The issue was expected to close on last Friday but has been extended to January 13.

According to the company, the N3.234 billion proceeds expected from the issue would be used to finance business expansion(29.17 per cent); refinancing of loans (58.34 per cent); and investment in working capital (9.73 per cent).

The Chairman of C & I Leasing Plc, Chief Chukwuma Okolo had told the shareholders that as they look ahead, the Board and Management of the company have full confidence that the rights issue will result in stronger earnings and cash flows and ultimately improve investment returns.

“It is my privilege, and the privilege of your board of directors, to serve with a view to building shareholder value over the long term, and I encourage all shareholders to participate fully in this rights issue,” he said.

The company said it had experienced significant growth in marine division due to carefully thought out strategy for the business, hence the need to expand operations of the marine business and invest in critical spare parts and engine upgrade for some of the vessels.

According to the company, the new shares from the right issue shall qualify for dividends (or any other distribution) declared for the financial year ending 31st December 2019, as long as the qualification date for the dividend (or any other distribution) is after the allotment of the shares being issued.