NSE Indefinitely Suspends LASACO Assurance Pending Completion of Share Reconstruction Exercise
The Nigerian Stock Exchange has placed an indefinite suspension on the stock of LASACO Assurance Plc, pending when the insurance company will finalise its share reconstruction exercise.
In a circular that was seen by Business Elites Africa, the Nigerian bourse informed stakeholders that the decision to indefinitely place a suspension on the buying and selling of LASACO Assurance Plc shares, was done with the intention of determining shareholders who are eligible to participate in the share reconstruction.
“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 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,” said part of the circular by the Nigerian Stock Exchange.
It should be noted that last week, the NSE had given LASACO Assurance Plc a one week extension to finalise the reconstruction of the company’s issued and fully paid-up Share Capital of 7,334,343,421 ordinary shares of 50 kobo each in the ratio of ONE (1) new Ordinary share for every FOUR (4) ordinary shares. Prior to this time, the insurance company had on January 28th, 2020, obtained regulatory approvals to embark on the share reconstruction exercise.
EDITOR’S NOTE: Investopedia defines share reconstruction (also known as reverse stock split), “as a type of corporate action that consolidates the number of existing shares of stock into fewer, proportionally more valuable, shares. Reducing the total number of outstanding shares in the open market can be pursued for a number of reasons, and often signals a company in distress.”
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