Olufemi Adeyemi 

In a significant move to stabilize and reposition its operations, shareholders of Standard Alliance Insurance Plc have approved the conversion of a N12 billion debt into equity, a change of name, and several other key resolutions during an Extraordinary General Meeting (EGM) held virtually. The developments were disclosed in a corporate filing submitted to the Nigerian Exchange Limited (NGX) on Friday.

The company, which is currently on the NGX Delisting Watchlist, has been working to address longstanding financial and operational challenges. It only recently filed its delayed 2020 financial reports this April, signaling the beginning of a broader effort toward regulatory compliance and strategic revival.

At the heart of the EGM was the approval of a debt restructuring plan that authorizes the conversion of N12 billion in convertible loan obligations into ordinary shares. The decision follows a Convertible Facility Agreement dated December 12, 2024. Shareholders sanctioned the issuance and appropriation of up to 15 billion ordinary shares of 50 kobo each, enabling the company to fully discharge its financial obligations under the agreement.

According to the resolution, “the Directors are hereby authorized to appropriate up to 15,000,000,000 ordinary shares... and allot the same at a price and upon terms and conditions which in their opinion are beneficial to the Company.”

In addition to the debt conversion, shareholders also approved a proposed change of name from Standard Alliance Insurance Plc to Fortis Global Insurance Plc, pending regulatory approvals. The name change is part of a broader rebranding and repositioning strategy intended to reflect the company’s new direction and renewed corporate vision.

The EGM also gave the green light to a series of corporate restructuring initiatives, including:

  • The appointment of seven new directors to the board.
  • Reconstruction of existing share capital to better align with the company’s new financial structure.
  • Consideration of transforming the business into a holding company structure, potentially involving the divestment or spin-off of business units, asset and liability transfers, and possible mergers or acquisitions with other entities.

These decisions, according to the company, are geared toward ensuring long-term sustainability, enhancing governance, and positioning the firm for future growth in a competitive market.

With these approvals, Standard Alliance (soon to be Fortis Global Insurance) is laying the groundwork for a strategic turnaround, hoping to restore stakeholder confidence and create a more agile and robust corporate structure.

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