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Shareholders of Veritas Kapital Assurance Plc have granted the company approval to raise additional N5 billion to increase its minimum paid-up capital to N12 billion ahead of the sector’s June 2020 recapitalisation deadline.
The shareholders gave their approval at the company’s Extraordinary General Meeting (EGM) held in Abuja where they mandated the firm to beef up its capital base through irredeemable preference shares.
Speaking at the EGM, the Chairman of the company, Mr. Thomas Etuh, said the board chose irredeemable preference shares because it’s the best way to raise funds at this time as the capital market is not a viable means of raising capital.
According to Etuh, after seven years, the preference shares will automatically be converted to ordinary shares.
Also speaking with the press on the sidelines of the event, the Managing Director/CEO, Veritas Kapital, Mr. Kenneth Egbaran, said, the company was “trying as much as possible to work within the set time of the regulator to raise our capital base and the instrument we are using is the convertible irredeemable preference shares.”
