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Nigeria: Mutual Benefits to Raise N10b From Capital Market
Real estate news By AllAfrica.com
29 October 2007
Shareholders of Mutual Benefits Assurance Plc (MUTUAL) has endorsed its directors' plan to raise an additional N10 billion from the capital market, to boost its capital base. The shareholders of the company gave this endorsement in Lagos at the company's Extra-Ordinary general meeting. At the meeting they resolved that the directors could raise more funds through combinations of the following; bond with options, loans, debt , etc or offer for subscription, private placement, special placement, etc at a price to be determined at the discretion of the directors subject to requisite regulatory approvals.
Chairman of Mutual Benefits, Chamberlain Oyibo, said the decision to raise the funds was informed by the needs to have adequate working capital to be able to give good returns to the shareholders on their investment at the end of the financial year. Oyibo assured the shareholders, that the funds would be judiciously used since the company has already identified the areas of investment He said that the company is set to take the leadership position in the nation's insurance industry, through the delivery of excellent services to customers and meeting the expectations of all stakeholders.
Managing director of the company, Akin Ogunbiyi, who spoke on why the company would be raising the additional funds, said that it would help the underwriting firm to be an active player in the oil and gas business. He pointed out that the local insurance companies have not been taking advantage of the local content policy in the oil and gas industry even though a target of 45 per cent and 70 per cent was set for 2006 and 2010 respectively. Ogunbiyi stated that, "for any company to participate actively in the oil and gas business, it must have adequate capital and the expertise to actualise its plans."
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