Chanas Assurances, one of Cameroon's three largest non-life insurers, plans to more than double its share capital to FCFA13.27bn ($233.7m) from CFA6.05bn at present, a net increase of 119.35%.
The capital restructuring will be effected through a capital reduction, a share issue to raise cash of FCFA3.33bn, and a bonus issue. This was approved at an extraordinary general meeting held on 14 April.
Chanas will first reduce its capital by FCFA1.45bn to FCFA4.60bn. The insurer will then carry out a FCFA3.33bn capital increase by issuing 33,260 new shares with a nominal value of FCFA100,000 each, for cash. That will bring its capital to FCFA7.93bn. Chanas will then capitalise FCFA5.35bn of reserves, via a bonus issue, taking the new share capital of the company to FCFA13.27bn.
Chanas is controlled by Cameroon's state oil corporation, Société Nationale des Hydrocarbures (SNH). The latter injected FCFA2.3bn in Chanas in 2020, raising Chana’s capital to FCFA6.5bn in a financial rescue.