The board of C&I Leasing Plc, on Tuesday, informed The Nigerian Stock Exchange (NSE) and the investing public that Peace Mass Transit Limited has acquired 313,326,316 units of its Neoma Africa Fund L.L.C (formerly Aureos Africa Fund, L.L.C.) unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 each or its US$ equivalent in C&I Leasing Plc (US$10m).
When fully converted, the loan stock will result in the issuance of 987,500,000 ordinary shares of C&I Leasing, which will represent 55.82% of the issued shares of the company.
The company, in a regulatory filing by Mbanugo Udenze & Co, the company secretary, expressed its board’s belief “that this is a very positive development,” assuring “that all requisite documents in connection with the transaction have been executed by parties.”
The transaction, the statement continued, “will strengthen the capital base of the company and improve clarity of the capital structure.
“This is highly beneficial to the company as the need for a possible redemption of the Notes, with the company’s cash resources, has been eliminated. It is against this background that the shareholders approved the Conversion of the Notes to ordinary shares at an Extraordinary General Meeting held on 3rd November 2020.”
Continuing, the statement stressed that the purchase and eventual conversion of the shares will strengthen the credentials of C&I Leasing as a leading Nigerian-owned service provider with operations in Nigeria, Ghana, and the United Arab Emirates.
Recall that C&I Leasing had last year announced plans for an Extraordinary General Meeting on November 3, to approve the conversion by Neoma Africa Fund, L.L.C (formerly Aureos Africa Fund L.L.C.) of the US$10m Loan Stock issued by C&I Leasing.
As part of the special resolutions to be passed at the meeting, the directors proposed “the conversion by Neoma Africa Fund, L.L.C (formerly Aureos Africa Fund L.L.C.) of the US$10m unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 or the US$ equivalent units into 987,500,000 ordinary.”
The meeting also authorized the company not to “engage in any capital raising through the issuance of equity securities such as ordinary shares, preferred shares, bonds, loans, warrants, rights, options or other similar instruments or securities which are convertible into or exercisable or exchangeable for, or which carry a right to subscribe for or purchase ordinary or preferred shares of the Company or any instrument or certificate representing a beneficial ownership interest in the ordinary shares of the
Company, including global depositary receipts and American depository receipts and any other security issued by the company, even if not convertible into ordinary shares, that derives its value and/or return based on the financial performance of the Company or its shares whether through rights offerings, follow-on offerings or any other offering or transaction until the conversion is effected.
