News Column

Sovereign Trust to Raise Additional Capital

June 25, 2014

The management of Sovereign Trust Insurance Plc plans to embark on another rights issue aimed at consolidating the ownership of the underwriting firm by its existing shareholders, the company's Managing Director, Wale Onaolapo, has disclosed.

This is in fulfillment of one of the resolutions reached by the shareholders at the 18th Annual General Meeting held last year, which empowered the directors to raise additional equity capital by way of special placement or public offer/rights issue or a combination of any of them.

The rights issue will put on offer one new ordinary share for every three ordinary shares of 50 kobo each held in the company as at the close of register during the last Annual General Meeting.

Consequently, the management enjoined all shareholders of the company to fully exercise their rights in the proposed rights issue as a way of consolidating and increasing their stake in the ownership of the very dynamic and forward-looking insurance company. The company, more than ever before, is poised to take the insurance business to a greater height as it gravitates to the next phase of its growth agenda.

Onaolapo said the management has set a growth agenda aimed at positioning the underwriting firm as one of the top players in the insurance industry, particularly, in the oil and gas sector where it has developed very unique expertise and professionalism.

The managing director called on the shareholders to lend total support to the rights issue once it is placed on offer in achieving the various objectives that have been set before the organisation. He equally noted that the company is committed to creating exceptional value to all its shareholders, saying "In achieving the huge tasks that have been placed before us, we have identified that a very robust capital base is critical to the success of the set agenda; hence the need to call on our shareholders to fully exercise their rights by fully subscribing to the rights issue and ultimately grow their investments in the company".

He said Sovereign Trust is working assiduously towards being one of the most preferred insurance companies in the country for people to do business with, invest in, as well as be the choice employer of labour.

Onaolapo added that the confidence reposed in the company's board and management by its shareholders, is enough impetus for wanting to do more and exceptionally well for the interest of all.

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Source: AllAfrica

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