Hmm!!! Goldlink Insurance to raise N8bn from capital market

Stanley Opara

Goldlink Insurance Plc is planning to raise N8bn from the capital market to enhance its shareholders’ fund and to strengthen its balance sheet.

The acting Managing Director of the company, Mrs. Olufunke Moore, who disclosed this at the Facts Behind Restructuring on the Nigerian Stock Exchange, said the funds would be raised by way of rights issue or public offer.

Moore said the move was part of recommendations by the interim management board inaugurated by the National insurance Commission in 2012 to audit the accounts for the years ended 2011, 2012, 2013 and 2014.

She added that the fund raising exercise would enable the company to meet up with the share capital requirements of the 2003 Insurance Act, as composite insurer, while expressing optimism that it would return the company to solvent position in order undertake big ticket transactions.

According to her, the proceeds from the offer will be deployed in upgrading its information technology framework, while some parts of the proceeds would be invested in fixed instruments and real estate.

She further stated that Goldlink would reinvigorate its marketing strategy in 2016 in pursuit of its objective of reclaiming its market shares in the insurance industry.

The company, she noted, would grow its gross premium income from the set target of N5.2bn in 2016 to N10.5bn in 2019 on successful conclusion of the offer.

She further explained that the interim management board reconstituted by NAICOM in February 2016 with the mandate of assuming oversight responsibilities and performing normal duties of the board of directors for sound management and growth of the company, was able to reorganise the management with resultant return of vibrancy and efficiency in managing the company.

The board, she noted, also took steps to reinforce budgetary control as an effective tool for financial and expenditure management and also commenced the review of past financial and employment policy and practices of the company.

It also commenced the process of sensitising prospective investors, existing shareholders and external investors to achieve the recapitalisation mandate.

Speaking at the event, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, explained that the Facts Behind Restructuring was a new engagement forum inaugurated by the NSE to allow companies undergoing restructuring to brief the market on their current financial and operational statuses, inform the investing public of the activities they have been engaging in to restructure their firms.

He said the forum also allowed such firms to speak about the processes of resuscitating their businesses to make them viable in order to come into full compliance with their post-listing obligations.

 

Source: Punch