Linkage Assurance Plc has taken a step toward strengthening its balance sheet as its board of directors approved plans to raise an additional N16 billion in new capital through a mix of equity options.
The company, in a filing on the Nigerian Exchange, authorised its board to source additional funds via private placement, rights issue, public offer, or a combination of these, depending on market conditions and subject to regulatory approvals.
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As part of the capital raise, the insurer will also increase its authorised share capital to accommodate the new issuance. The new shares will be ranked equally with existing ordinary shares and will be registered with the Securities and Exchange Commission, the Corporate Affairs Commission, and the Nigerian Exchange.
The company’s Memorandum and Articles of Association will be amended to reflect the new share capital structure and any applicable amendments in line with the Companies and Allied Matters Act (CAMA 2020) once the process is completed. The board has also been empowered to appoint professional advisers and execute all documents necessary to implement the capital raise.
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The board is further authorised to finalise and sign all necessary documents, appoint any professional advisers required for the transaction, and carry out all additional actions needed to give full effect to the resolutions, including meeting all regulatory requirements.
The company also confirmed that all previous actions taken by the board or management in relation to the capital-raising process have been approved and ratified.