Prestige Assurance PLC plans to write off its accumulated loss of N776.5 million by cancelling about 1.55 billion ordinary shares of 50 kobo each from its issued and fully paid share capital.
According to the proposal, Prestige Assurance plans to reduce its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.
The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets.
The insurance company on Wednesday submitted application to the Nigerian Stock Exchange (NSE), seeking regulatory approval for the cancellation of the shares and reduction of the share capital.
Prestige Assurance explained that the reconstruction will also allow the company to declare dividend and improve its perception in the market thereby making it more competitive.
The capital reconstruction, according to the insurance company will enable it wipe out its accumulated retained losses of N776.51 million and reposition it on a trajectory for subsequent accumulated retained profit and create more value to its shareholders.