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The appetite of foreign investors to get good returns from the Nigerian economy has continued to grow as Daewoo Securities (Europe) Limited of United Kingdom, has invested in Mutual Benefits Assurance (MBA) Plc.
MBA is one of the insurance firms that was successful in the recent recapitalisation exercise. THISDAY check revealed that Daewoo Securities recently invested N2.6 billion in MBA through a “Bond with Option.”
Financial analysts explained that the implication of the option clause is that the company can convert its investment into equity at a later date.
Daewoo Securities trades in various securities. The company also engages in brokerage, investment banking, and wealth management businesses. It also sells and trades in investment banking-related products. The company is also involved in initial public offerings, corporate bonds, rights offerings, and asset-backed securities businesses.
The Chairman of MBA, Mr. Chamberlin Oyibo, confirmed the investment by Daewoo Securities in his report to shareholders ahead of the company’s Annual General Meeting scheduled to hold in Kaduna, Kaduna State, next week.
“Based on the attractiveness of MBA to foreign investors, Daewoo Securities (Europe) has invested the sum of N2.6 billion in our company through “Bond with Option,” he said.
Oyibo said that MBA has been transformed into a highly successful and sustainable business committed to delivery superior services to customers, providing career development opportunities for employees and building value for shareholders.
Meanwhile, the directors of the company are asking the shareholders to approve the allotment of shares to Charles Enterprises LLC and CIL Risks & Asset Management Limited, two companies that invested in the company during its last public offering.
Specifically, directors want 2.1 billion ordinary shares of 50kobo each out of the company’s unissued share capital be allotted to Charles Enterprises at 60 kobo per share.
A total of 165,483,380 shares of 50 kobo each are to be allotted to CIL at 60 kobo per share.
In the same vein, the directors are asking for shareholders’ approval to allot MBA’s shares to existing shareholders of Worldwide Insurance Plc that was acquired by MBA.
The directors are requesting that 45,775,960 shares of 50 kobo each of the company be allotted to shareholders of Worldwide Insurance at the ratio of one MBA’s shares of 50 kobo each for every five shares of N1 each of Worldwide Insurance.
Apart from the above, MBA plans to return to the capital market for more funds.
Consequently, the directors have requested: “That pursuant to Article 35 of the Article of Association of the company, and in line with authorised share capital, which is N10 billion divided into 20 billion ordinary shares of 50 kobo each, the board of directors is hereby authorised to raise additional capital by way of equity or debt, or a hybrid, through redeemable convertible bonds, loans, preference shares, by way of offer for subscription and/or right issues, upon such terms and conditions to be determined at the discretion of the directors and subject to any requisite regulatory approvals.”
MBA posted gross premium of N2.21 billion for the year ended December 31, 2007, up by 13 per cent from the N1.947 billion in 2006. Profit after tax rose by 48 per cent from N702 million in 2006 to N1.037 billion in 2007.
The directors have recommended a dividend of N480 million, which translate into six kobo per share.