By Nike Popoola Wednesday, 22 Sep 2010

STACO Insurance Plc has offered by way of rights issue, 1.6 billion ordinary shares of 50kobo each at 50kobo per share.

The rights issue will be on the basis of one ordinary share for every three ordinary shares held by the shareholders whose names appeared in the register of members as at the close of business on March 31, 2009.

A statement from the company on Tuesday said, during the company‘s Completion Board Meeting, The Chairman of the Board of Directors, Mr. Dere Otubu, discloded that the proceeds from the right issue would be used to enhance operation, invest in proposed new subsidiaries. It will also be used for upgrading companies and existing subsidiaries, upgrading of information technology, branch upgrade and expansion.

He noted that the reforms introduced by the Federal Government in the insurance sector, which included increased capital requirements, mandatory local content policy and the compulsory insurance policies, had geared up the sector to become one of the top performers in the economy.

He urged shareholders of the company to take up their rights in order to ensure that they continued to take full advantage of the current and potentials benefits of their investment in the company.STACO Insurance is one of the 49 insurance companies approved by the National Insurance Commission after the last consolidation exercise in the insurance sector.

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Source:Punch