C & I Leasing reduces shares to tackle capital challenges

As part of its strategies to address its capital challenges, C & I Leasing Plc has notified the Nigerian Stock Exchange (NSE) of its plans to cut down its issued and paid-up share capital from N808,505,000 being 1,617,010,000 ordinary shares to N202,126,250 being 404,252,500 ordinary shares.

In a release the company sent to the NSE on Wednesday, it explained that it would be consolidating every four ordinary shares currently held into one new share in the company.

C&I Leasing stated that the reduced share capital will be added its share premium account.

“The purpose of the reconstruction is to allow the company to have enough unissued shares to accommodate future plans to raise capital through the equity capital market,” the company clarified.

It plans to use the additional capital to finance the company s expansion plan, extinguish some liabilities and enhance the company s capital mix.

“The qualification date for the share consolidation shall be Wednesday, 12th December, 2018 and the shares of the company will be placed on suspension from Thursday, 13th December, 2018 to Thursday, 27th December, 2018 to allow for the consolidation exercise,” it concluded.