Guinea Insurance shareholders approve N15bn capital raise

Shareholders of Guinea Insurance Plc have approved a plan by the company to raise up to N15 billion in additional equity, as part of a comprehensive recapitalisation programme aimed at strengthening its financial position.

The approval was given at an Extraordinary General Meeting (EGM) held virtually in Lagos on Monday, in compliance with the Business Facilitation (Miscellaneous Provisions) Act 2022 and the Companies and Allied Matters Act (CAMA) 2020.

Following the resolutions, shareholders approved an increase in the company’s minimum issued share capital from N4 billion, comprising eight billion ordinary shares of 50 kobo each, to N19billion, comprising 38 billion ordinary shares of 50 kobo each.

They also endorsed a plan to raise up to N15 billion in additional equity through a combination of rights issue and private placement.

Speaking at the Extraordinary General Meeting, the Chairman of the Board, Mr Temitope Borishade, described the shareholders’ approval of the recapitalisation plan as a pivotal milestone in the company’s transformation journey.

He emphasised that the capital raise would strengthen the company’s balance sheet, restore its statutory capital position, enhance underwriting capacity, and support long-term strategic growth initiatives.

Borishade said, “The overwhelming support of our shareholders reflects their confidence in the Board and Management’s strategy to rebuild Guinea Insurance Plc into a stronger, more resilient, and more competitive insurer.

“This recapitalisation plan is not only a regulatory requirement but also a strategic opportunity to create sustainable value for all our stakeholders.”

The Board further reaffirmed its commitment to transparency, robust governance, and the prudent deployment of the capital to be raised, working closely with regulators and professional advisers.

This initiative underscores a strategic dedication to building a resilient, forward-looking insurer capable of meeting the expectations of policyholders, investors, regulators, and partners, while supporting broader economic activity and delivering sustainable returns to shareholders.

Following the successful approval of all resolutions, the company will now proceed with the required regulatory filings and implementation steps to execute the rights issue and private placement.