- Underwriters take up board seats
Reinsurance company, Prima Re. has announced the appointment of two new board members from IDC, according to an issued statement.
“Pursuant to section 3.59 of the LuSE Listing Requirements, the Board of Directors of Prima Reinsurance PLC (“the Board”) wishes to announce the appointments of Mr Mateyo Chresta Kaluba and Mr Muchindu Kasongola as Directors on the Board of Directors of Prima Reinsurance PLC with effect from 5th November, 2020”, read a statement issued on SENS by Choice Corporate Services Limited who provide Company Secretary services to Prima Re. on 10 November 2020.
According to the issued statement, “Mr Kaluba is the Group Chief Executive Officer of the Industrial Development Corporation (“IDC”). He holds a Bachelor’s Degree in Business Administration and an MBA alongside other Post Graduate Qualifications in executive management and leadership. He possesses over twenty-seven (27) years’ experience in the public sector, representing various Government Ministries in senior officer positions. He currently oversees the entire IDC portfolio of public enterprises providing strategic direction and leading transformational change initiatives aimed at building a more competitive and profitable Group of Companies. In addition to the foregoing, Mr. Kaluba represents the IDC on the Boards of key strategic institutions where he has been instrumental in ensuring alignment with requisite strategic national interests. He brings to the Board an immense wealth of strategic management and leadership experience garnered over close to three decades”.
Further, “Mr Kasongola is the current Chief Investments Officer at the Industrial Development Corporation. He has vast experience in investments management, portfolio management, strategic planning, corporate valuations, risk management and financial management. He has in the past held several senior executive positions in Corporate Advisory and Investments Management corporations. He is a Fellow of the Chartered Institute of Management Accountants (“CIMA”) and brings a wealth of board and executive management experience”.
In June 2020, “Shareholders of Prima Reinsurance Plc were referred to the Declaration Announcement published on Friday, 29 May 2020 and the Finalisation Announcement published on Friday, 5 June 2020 as well the Circular to Shareholders dated Monday, 22 June 2020 setting out details of the Prima Re Renounceable Rights Offer of 15,000,000 ordinary shares (the “Rights Offer”) which was underwritten by the Industrial Development Corporation (“IDC”)”, read a statement issued by Choice Corporate Services Limited on 23 July 2020 on behalf of the Board of Prima Re.
IDC was a key player in this particular Rights Issue as the underwriter. The role of the underwriter is to guarantee that the funds sought by the company will be raised. The agreement between the underwriter and the company is set out in a formal underwriting agreement which was signed between Prima Re and IDC. Following the rights issues, the shareholding of IDC in Prima Re is now 28.17 % after underwriting the Rights Offer. Having an increased stake in the company gives IDC the right to increase its presence in the Prima Re. boardroom.