Daily Independent (Lagos)
6 October 2008
Indications have emerged that the ongoing offer for subscription being undertaken by Crusader (Nigeria) Plc will be oversubscribed again as the offer was overwhelmingly endorsed by both the stockbrokers and the company's shareholders.
Speaking at the company's investors' forum held in Lagos, Mr. Seun Oluwole, a broker who represented the doyen of stockbrokers in the country, encouraged investors not to allow the current trend at the Nigerian Stock Exchange market debar them from taking their rights at the Crusader offer.
While explaining that the recent experience at the exchange is not peculiar to Nigeria, but a worldwide phenomenon, Oluwole advised investors to trust in the company's board of directors and the management team, adding that these are the factors that will determine the profitability of any company.
According to him, the company shares value at the market floor before it was placed on technical suspension has grown consistently, stressing that the rationale behind the growth could be attributed to the visionary leaders who sit at the helms of affairs at the company, coupled with its decision to take a step higher above its contemporaries by going beyond insurance into real estate and other financial services.
Sunny Nwosu, President, Independent Shareholders Association, also spoke at the forum. Nwosu, who was represented by Mr. Olusegun Adedapo, further testified to the fact that the company's financial antecedents would guarantee that the investors would soon be scrambling for the offer.
While commending on the integrity of the company's Group Managing Director, Mr. Olutola Mobulurin, which he said has impacted positively on the performances of the company, Adedapo enjoined the investors not to doubt the company promise of 12 per cent interest per annum over the Crusader Convertible Debenture.
The President, Nigeria Shareholders Solidarity Association, who was also present at the forum, endorsed the offer saying that he has made up his mind to increase his holdings in Crusader through the Rights while he enjoins all other shareholders not to relent in taking in full their rights in the offer.
It would be recalled that the company recently postponed its planned public offer to a more auspicious time in a quick reaction to the decline in investors' appetite for equity shares in Nigeria Stock market but to continue with its Rights Issue and its convertible debenture offer.
Meanwhile, Mobolurin, pointed out that the purpose of the capital raising exercise is to enable the company create a strong and fully diversified financial services group providing one stop financial services solution to its clientele.
The proceed, according to him, would be used to finance acquisition of new businesses, expansion of its existing businesses and products, expansion of its distribution network and upgrading its information technology infrastructure.
The gross proceeds and the concurrent Right Issue, according to him, total N7.59 billion made up of N3.59 billion through the Rights issue of 797,884,198 ordinary shares of 50 kobo each at N4.50 per share and N4 billion through the offer for subscription of N4 billion 12 per cent unsecured convertible debenture 2013 at par.
The expected combine net issue proceeds of N7,086,754,559.46 after deducting the cost of offer, estimated at N503,724,421.54 will after all increase the capital base of the company to N15 billion.
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