Prima Reinsurance has advised shareholders that it is making steady progress in the paperwork around the forthcoming rights offer, according to a statement from the company.
“Shareholders of Prima Reinsurance Plc (“Prima Re” or “the Company”) are referred to the 1st Announcement (Declaration Date) published on Friday, 29 May 2020 advising shareholders that the Company intends to raise ZMW 40.5 million, via a Renounceable Rights Offer (the “Rights Offer”) for Shareholders to subscribe for 15,000,000 (Fifteen Million) new Ordinary Shares”, read a statement issued by Choice Corporate Services who are Prima’s company secretary on 1 July 2020. “Prima Re wishes to advise Shareholders that a Circular to shareholders giving full details of the Rights Offer dated Monday, 22 June 2020 has since been posted to all shareholders on the share register as at 19 June 2020 (“the Record Date”).
The rights issue is part of Prima’s strategy of strengthening its balance sheet. “Prima Re is focused on growth for 2020 as well as strengthening its balance sheet through new investment opportunities so as to compete more favourably on the international platform within the African continent”, according to an extract from the company’s Managing Director Exhilda Lumbwe in their 2019 annual report.
However, the company is also well aware that it needs to manage its debt as it seeks an expansionary strategy across the continent. “As the Company continues to extend its geographical reach on the continent and consolidating its position in the existing markets, debt management will remain a priority on the domestic front”.
