Sovereign Trust To Deepen Retail Market With New Capital

The chairman of Sovereign Trust Insurance Plc (STI), Oluseun Ajayi said the company plans to use the additional capital they are sourcing for to deepen their retail business across the country.

Ajayi disclosed this to shareholders today September 21, 2017 at the company 22nd Annual General Meeting (AGM) in Lagos.

Ajayi who used the yearly meeting to address some concerns of shareholders about the company performance in the 2016 financial year explained that the issue of Daewoo loan will soon be resolved in the next two years.

He pointed out that they have put in place strategies that will enable the company to pay dividend. According to him, they plan to clear the company’s negative earnings by first quarter of 2018, which will help to put the company book in good shape.

On the bad debt in the company financial statement, the chairman said, it was as a result of the difficult situation which most business faced last year. Adding that some of the companies that were owing them have closed down, which makes it difficult for recovering of the debt. But assured shareholders that those in operation they are engaging them.

Some of the key highlight of day’s meeting is the approval by shareholders for the board of directors to increase their authorized share capital from N5,500,000,000 to N7,500,000,000 by the creation of 4,000,000,000 ordinary shares of 50 kobo each ranking pari passu in all respects with the existing ordinary shares of the company.

The directors also received approval from shareholders to raise additional equity capital for the company up to the maximum limit of the authorized share capital. Subject to the approval of relevant regulatory authorities, this will be executed, whether by way of special placement or public offer without a preferential allotment or right issue or a combination of any of them, either locally or internationally and upon such terms and conditions as the directors may deem fit in the interest of the company.

It was also agreed by shareholders present at the meeting, that in the event of over subscription of the offer / issue, that the board of directors can capitalized the excess money and allot additional shares to the extent that can be accommodated by the company’s unissued share capital.

This will also be subject to the approval of the regulatory authorities and that the proceeds should be used for same purpose as the offer / issue. And that the company’s Memorandum and Articles of Association be amended to reflect the increase in its authorized capital.

Ajayi assured shareholders that resources will be continually deployed in line with the company’s strategic master plan to achieve greater successes and take its frontal position in the years ahead. In his words “We are currently in the process of initiating another five years strategic direction that will take the company to the next phase of our growth from 2018 to 2022. Technology, no doubt will form the pivotal thrust of this process in ensuring that we remain competitive and relevant in the insurance market space in many years to come”.

Photo Caption:Chairman of Sovereign Trust Insurance Plc (STI), Oluseun Ajayi