IEI gets shareholders’ approval to raise N13bn

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International Energy Insurance Plc says it is set for repositioning as shareholders have given the interim board the approval to recapitalise the company for growth and competitiveness.

A statement from the firm said the expected new capital when injected would enhance the firm’s working capital, improve IT infrastructure, meet solvency requirement and provide new investment opportunities.

“Rising from the company’s 42nd annual general meeting held in Kano, the shareholders approved that the directors in conjunction with the technical committee should further recapitalise the company by raising additional N9bn, which when added to initial recapitalisation approval of N4bn given at its 41st annual general meeting amounts to a total approval of N13bn,” the company stated.

The firm also said the money could be raised from the capital markets, local, or foreign investors whether by way of private placement, public or rights offer and/or issuing ordinary and/or preference shares of the company for such equity, whether by bonds, convertible loans  or other debt instruments, with or without the option of converting such bonds, loans  or other debt instruments to ordinary and or preference shares of the company, or by debt equity conversion upon such terms and conditions as the directors might deem fit, subject to all relevant approvals.

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Besides that, the IEI said the directors were also authorised to constitute a technical committee of the board and shareholders to renegotiate and restructure the company’s indebtedness to Daewoo Securities (Europe) Limited.

The Interim chairman of the board, Mohammad Ahmad, who was appointed on May 18, 2015 following regulatory intervention by the National Insurance Commission, said the board had taken necessary actions to stabilise and ensure sound management and growth of the company.

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