The board of C&I Leasing Plc, on Monday informed shareholders and other capital market stakeholders that it has received the blessing of the Nigerian Stock Exchange (NSE) to proceed on reconstruction of its share capital.
The exercise which would reduce the company’s share in issue by three-quarter will see shareholders received one unit of the new C&I Leasing shares for four previously held.
Specifically, C&I’s issued and paid-up share capital is to be reduced from N808.505m being 1.617bn ordinary shares of 50 kobo each, to N202.126m dividend into 404.252m units of 50 kobo each by consolidating every four ordinary shares currently held into one new share in the company.
The share capital so reduced, will be added to the company’s share premium account.
Qualification date for the share consolidation is Wednesday, December 12, 2018, following which the company’s shares shall be placed on full suspension (not be traded) from Thursday, December 13 through Thursday December 27, 2018 to allow for the consolidation exercise.
The share reconstruction, the company explained in the statement, is to enable it “have enough unissued shares to accommodate future plans to raise capital through the equity capital market”
The additional capital, it assured, “will be used to finance the company’s expansion plan, extinguish some liabilities and enhance the company’s capital mix.