The Nigerian Stock Exchange (NSE) has placed an indefinite suspension on trading on LASACO Assurance Plc after the company failed to complete its share capital reconstruction within the initial stipulated period.
In a circular, the NSE stated that the placement of full-suspension on trading in the shares of LASACO Assurance was to determine shareholders eligibility for the share capital reconstruction as at the qualification date of January 29, 2021.
The statement reads:
Please refer to our market bulletin of 1 February 2021 with reference number: NSE/RD/LRD/MB07/21/02/01, notifying the Market of the placement of full-suspension on trading in the shares of LASACO Assurance Plc (LASACO or the Company), in order to determine shareholders eligible for the share capital reconstruction as at the Qualification Date of 29 January 2021.
Market stakeholders are hereby notified that the full suspension placed on trading in the shares of LASACO has been extended in order to enable the Company to complete the reconstruction exercise and to allot the reconstructed shares to eligible shareholders. The extended period of suspension is from 15 February 2021 till further notice.
LASACO Assurance plans to cancel 5.5 billion ordinary shares of 50 kobo each, 75 per cent of its current issued share capital, under a massive share capital reconstruction plan.
The share capital reconstruction includes the exchange of one new ordinary share of 50 kobo each for every four ordinary shares currently held by shareholders.
The reconstruction will lead to a reduction of the paid-up share capital of the company from its current N3.667 billion divided into 7.334 billion ordinary shares of 50 Kobo each to N916.793 million divided into 1.834 billion ordinary shares of 50 Kobo each at the end of the reconstruction.
Shareholders of LASACO Assurance had, at the 39th Annual General Meeting (AGM) on October 8, 2019, approved the share capital reconstruction.