African Alliance Insurance Plans N12bn Recapitalisation Strategy

African Alliance Insurance Plc is implementing a recapitalisation strategy that includes a mix of convertible debt and asset sales to enhance its capital base and comply with regulatory requirements. Shareholders approved these capital-raising options during an Extraordinary General Meeting held in Lagos.

The company’s board is authorized to raise up to N12bn through various methods, including private placement, rights issue, public offer, and convertible subordinated debt notes. A significant aspect of this plan is the issuance of a zero-coupon convertible subordinated debt note via private placement, which can convert into ordinary shares upon certain specified events.

The board will set the conversion price, ratio, and other terms, pending regulatory approval. Additionally, shareholders sanctioned the disposal of properties and assets as part of the recapitalisation efforts.

The company may also issue unissued or legacy shares and increase its share capital if necessary. The board has the authority to appoint advisers and complete required regulatory filings.