The Securities and Exchange Commission (SEC) has approved the extension of the time allowed for the board of Crusader Nigeria Plc, to raise additional capital from existing shareholders by way of rights.
The offer, which was scheduled for closure on January 27, 2012 has now been extended to February 10, 2012.
In a statement made available to THISDAY, the Chairman of the company, Prof Mansur kenku, explained that the extension was necessary to make up for the working days lost to the last nationwide strike embarked by workers to protest the withdrawal of fuel subsidy by the federal government last month.
The company is currently offering 2,260,304,300 zero coupon unsecured subordinated irredeemable convertible debenture stock at par on the basis N50 debenture for every 100 ordinary shares at 50 kobo held as at the close of business on Tuesday, July 19, 2011.
Owners of the company endorsed the offer at the completion board meeting hosted by the company’s board in Lagos recently.
The offer, which issuing house is Capital Bancorp Limited opened on January 9, 2011 and was expected to end by the close of business on January 27, 2011.
It is to be paid for in full on acceptance by the shareholders and not tradable during the period of the offer. It is not underwritten by any organisation at the instance of the issuer.
According to the company’s board, 70 per cent of the proceeds of the offer worth N1.52 billion will be invested on subsidiaries including Crusader Hotels and Apartments Limited, Crusader Sterling Pensions Limited, a project that is expected to be completed in 18 months.
The remaining 30 per cent of the proceeds of the offer worth N651.58 million is expected to serve as working capital for the project and this according to the company is continuous.
The Crusader Nigeria Plc is a group comprising five wholly-owned subsidiaries including 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 per cent of the issued and fully paid-up shares of Crusader Sterling Pensions Limited.