Sunu Assurances Nigeria Plc has submitted an application to the Nigerian Stock Exchange to carry out a share reconstruction exercise.
The application followed the special resolutions passed by the shareholders of Sunu Assurances Nigeria Plc at an extra-ordinary general meeting (EGM) held on March 9, 2020, in favour of the proposal.
The share capital reconstruction will result in the cancellation of four existing ordinary shares out of every five ordinary shares of Sunu Assurances Nigeria Plc held by its existing shareholders. The total number of issued ordinary shares post the capital reconstruction exercise will be 2.8 billion ordinary shares of N0.50 each while a total of 11.2 billion ordinary shares of N0.50 each will become cancelled and unissued.
The Chairman of Sunu Assurance Plc, Mr. Kyari Bukar, had assured stakeholders that the company would have satisfied the newly required minimum paid-up capital of N5billion before the end of the year.
“Conscious efforts would be made to achieve the required minimum paid-up capital of N10 billion by September 30, 2021 through the rights issue exercise as approved by the shareholders at the last EGM,” he said.
Speaking on the financials of the company, the chairman said the company’s underwriting profit increased by 30 per cent from N914 million in the 2018 financial year to N1.2 billion in 2019.
Bukar said: “During the year, we were able to increase significantly our processes through improved operating efficiency, optimising our current assets and improving operating efficiency which is part of our strategy. We also seek to create further value by developing the opportunities embedded in our existing operations which present the most attractive options for growth. We are always looking beyond our current operations for sustainable growth opportunities,” he said.
According to him, going forward, the company shall strive to operate its business with a sharp focus on efficiency, transparency and sustainable cost improvements. “To this end, the company had been through a period of change which included the implementation of new operating procedures to strengthen our internal capabilities and prevent leakages. I have no doubt that the future will bring many new opportunities and challenges but we have learnt that by focusing on running safe and efficient operations, maintaining our costs and managing our strategic objectives, we would continue to succeed,” he stated.