In a bid to reinforce its capital base for further growth and development, Crusader Nigeria Plc, has disclosed its readiness to raise N2.3 billion through rights issue.
The offer which opens January 9 and closes January 27, 2012 will be undertaken through zero coupon unsecured subordinated irredeemable convertible debenture stock on the basis of N50 debenture for every 100 ordinary shares of 50 kobo each held at the close of business on Tuesday July 19, 2011.
The company said the of the offer would be used to restructure and strengthen the company’s capital base, provide it with operating capital, enhance its working capital, and upon conversion, reduce its financial gearing.
The estimated net issue proceeds expected to be N2.171,948,087 after deducting cost of issue put at N88, 356,213 will be distributed as follows:
The investment in subsidiaries will gulp 70 per cent of the net proceed put at N1.52 billion and remaining N651.6 million put into working capital.
Capital Bancorp Limited is the issuing house to the offer.
Crusader Group comprises five wholly-owned subsidiaries, Crusader General Insurance Limited, Crusader Life Insurance Limited, Crusader Trustees Limited, Crusader Properties Limited and Crusader Hotels and Apartments Limited.
The Group through two of its subsidiaries holds in total 50 per cent of the issued and fully paid up-shares of Crusader Sterling Pensions Limited.
The chairman of the company, Mr. Monsur Kenku, expressed optimism on the future of the offer, stating that it would go a long way in positioning the company for future challenges.
Speaking on the company’s financials, Kenku said the group increased its gross premium in 2010 by 3.9 per cent to N5.23 billion from N5.03 billion achieved in 2009.
He added that the life insurance business achieved a phenomenal increase of approximately 53 per cent, the general business recorded a reduction of nine per cent.
Commenting on the future outlook of the company, Kenku said the company was hopeful that it would key into the National Insurance Commission’s market deepening efforts, especially in the enforcement of compulsory insurance laws.