African Alliance Insurance Plc says its shareholders at an Extraordinary General Meeting on September 23, 2026 authorised the company to raise up to N12 billion to support its recapitalisation programme, according to a company report published by Nairametrics.
The resolutions give the board broad powers to pursue a mix of financing options including private placements, rights issues, public offers, convertible subordinated debt, asset sales and other structures permitted by law. The company said the capital could be raised through a combination of equity and debt instruments depending on market conditions and investor appetite.
“That the Board of Directors be and are hereby authorised to raise additional capital of up to N12 billion for the purpose of complying with the recapitalisation requirement of the Company in compliance with the NIIRA, by way of private placement, rights issue, public offer, convertible subordinated debt note, sale of assets, and other recapitalisation structure permissible under the applicable law.”
The shareholders also approved a convertible debt instrument as part of the recapitalisation strategy. The resolution included provisions for a zero-coupon convertible subordinated debt note, with conversion terms to be determined by the board.
“That the capital can be raised through the issuance, by way of private placement, of a zero-coupon convertible subordinated debt note (the ‘Debt Note’), on the principal terms and conditions set out in the relevant documentation with the investor(s), on such conversion price as determined by the Board.”
Shareholders empowered the board to decide final conversion terms, ratios and triggers for the debt note. Directors were also authorised to regularise and issue any unissued or legacy shares and to increase share capital if needed to accommodate the recapitalisation exercise.
The EGM resolutions authorised the board to appoint professional advisers, execute transaction documents and complete required regulatory filings with the Corporate Affairs Commission, the National Insurance Commission, the Securities and Exchange Commission and other authorities.
The proposed capital raise follows a regulatory intervention by the National Insurance Commission that began in October 2024 and included an appointment of an interim management team to stabilise the insurer. Earlier this year, NAICOM returned operational control of African Alliance to a board nominated by shareholders, Nairametrics reported.
The company said the approvals will allow management to move quickly on investor and regulatory requirements without calling further shareholder meetings on operational matters related to the capital raise.
Details on timing, pricing or target investors for the N12 billion fundraising were not provided in the company report.
Source: Nairametrics.
Featured image: Olasunkanmiariyo via Wikimedia Commons, CC BY-SA 4.0.
Leave a comment