Shareholders of Sagicor Financial Corporation are being asked to approve an increase in the financial services company’s stated share capital at its May 4 annual general meeting.
The company is seeking to make amendments to its capital structure through the issuance and reclassification of its stated share capital.
In a notice to shareholders announcing the annual meeting, which will be held at the Hilton Hotel in Barbados, the company said that it would be seeking shareholder approval to increase its stated capital from US$4.2 million to US$9.7 million.
The company is attempting to move the existing share capital from “US$4,244,941.31 divided into (i) 304,494,131 common shares of par value US$0.01 each (“the Common Shares”); and (ii) 120,000,000 convertible redeemable preference shares of par value US$0.01 (“the Convertible Redeemable Preference Shares”) to US$9,700,000.00 divided into (x) 650,000,000 Common Shares; and (y) 320,000,000 preference shares of par value US$0.01 each (“the Preference Shares”)” the notice said.
In order to facilitate the move, the company will be creating 200 million new preference shares, and re-designating the 120,000,000 “Convertible Redeemable Preference Shares” as 120,000,000 “Preference Shares”
For its financial year ended December 2016, Sagicor generated US$109.3 million in after tax profit (inclusive of income from discontinued operations), up from US$76.8 million in 2015 - an increase of 42.3 per cent.
In 2016, the company moved its head office operations from Barbados, where it had been resident for 170 years, and redomiciled to Bermuda.
Sagicor made the move after it was hit by a downgrade of Barbados’ sovereign credit rating to B from BB+ in 2015 by ratings agency Standard & Poor’s.
The company said Bermuda had a “stronger and more stable” credit rating, which would mean an upgrade for the firm to BB+ and a reduced cost of capital and increased attraction for potential investors.