Fortis Global Insurance secures regulatory approval for share capital reconstruction
Fortis Global Insurance Plc has announced the commencement of its share capital reconstruction exercise following regulatory approvals and shareholder authorization, as part of efforts to reposition the company and streamline its capital structure.
Fortis Global Insurance Plc has announced the commencement of its share capital reconstruction exercise following regulatory approvals and shareholder authorization, as part of efforts to reposition the company and streamline its capital structure.
The development was disclosed in a corporate disclosure to the investing public signed by the Company’s Secretary and Legal Adviser, Halima Jimada.
According to the company, the reconstruction will reduce its issued share capital from N6.46 billion comprising 12.91 billion ordinary shares of 50 kobo each to N1.61 billion comprising 3.23 billion ordinary shares of 50 kobo each, on the basis of one new ordinary share for every four existing ordinary shares held.
The company stated that the share reconstruction follows approvals granted by shareholders at the Extraordinary General Meeting (EGM) held on April 4, 2025, as well as subsequent regulatory clearances.
To facilitate the exercise, Fortis Global Insurance disclosed that trading in its shares will be temporarily suspended.
The insurer also announced the temporary closure of its register of shareholders during the reconstruction process.
Under the approved reconstruction arrangement, shareholders will receive one new ordinary share for every four existing shares held, effectively reducing the total number of issued shares by 75%.
The exercise is expected to result in a leaner share capital structure while maintaining shareholders’ proportional ownership interests in the company.
The temporary suspension of trading and closure of the shareholders’ register will allow the company’s registrars and the Central Securities Clearing System to complete the technical aspects of the reconstruction and update shareholder records accordingly.
Share capital reconstruction is a corporate action that reduces the number of shares in issue by consolidating existing shares into fewer units. While the number of shares held by investors decreases, their percentage ownership in the company remains unchanged.
During this period, the company’s registrars, PAC Registrars & Investors Services Limited, working alongside CSCS, will finalize the consolidation exercise and produce an updated shareholder register reflecting the new shareholding structure.
Upon completion, Fortis Global Insurance’s issued share capital will stand at N1.61 billion represented by 3.23 billion ordinary shares of 50 kobo each.
Fortis Global Insurance has faced significant financial challenges in recent periods, with the company reporting a net loss of N1.69 billion and a negative earnings per share of 13 kobo.
Trading activity in the stock has remained elevated, with about 1.25 billion shares exchanging hands within a three-month period, although the total value traded amounted to only N1.53 billion, reflecting its status as a low-priced stock.
Market analysts have noted that investors may continue to monitor the company’s financial performance and restructuring efforts closely as it seeks to improve profitability and strengthen its balance sheet.
