January 26, 2012
Crusader Nigeria plc, a member of the financial services sector of the Nigerian Stock Exchange (NSE) with businesses across insurance, pensions, properties and hospitality industry has in the last one month been in the market shopping N2.3 billion through rights issue.
If the time-table falls through as planned despite hiccups occasioned by the nation-wide strike over removal of fuel subsidy, the offer should officially close January 27, 2012. The rights issue is being undertaken via zero coupon unsecured subordinated irredeemable convertible debenture stock at 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 purpose of the offer the company stated would be will 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.
Investment in subsidiaries will gulp 70 percent 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 percent of the issued and fully paid up-shares of Crusader Sterling Pensions Limited.
Monsur Kenku, chairman of the company who had expressed optimism on the future of the offer said it would go a long way in positioning the company for future challenges.
On the company’s financials, the group increased its gross premium in 2010 by 3.9 percent to N5.23 billion from N5.03 billion achieved in 2009. While the life insurance business achieved a phenomenal increase of approximately 53 percent, the general business recorded a reduction of 9 percent.
On future outlook, the company is hopeful that it would key into the National Insurance Commission’s market deepening efforts, especially in the enforcement of compulsory insurance laws.
“As a group, we are refocusing on our core values of delivering exceptional services to our clients such that commensurate price can accrue from our above average service delivery”