CWG Plc Proposes Share Reconstruction

CWG Plc has notified the Nigerian Exchange and the investing public of its proposed share reconstruction.

In a notice to NGX, the company stated that Cordros Capital Limited is acting as Financial Adviser to CWG PLC in connection with the proposed Restructuring by way of Reduction of Share Premium Account.

“Upon receipt of shareholders’ approval, confirmation by the Federal High Court and the notifications of other regulators, the proposal for the Share Capital Reconstruction will be cleared with the Securities & Exchange Commission (SEC)”.

The proposed Restructuring is being undertaken in order to maximize shareholder value in the near term. This Restructuring will position the Company for more value creation and improve its perception in the market.

The proposed Share Capital Restructuring will not affect the Company’s authorised or issued share capital, but should result in a reduction of the credit balance in the Company’s Share Premium Account, while leaving the aggregate shareholders’ funds unchanged. It would have no impact on the Company’s creditors but rather, pave the way for the Company’s investors to receive dividends out of the Company’s future profits.

CWG currently carries accumulated losses of N2,498,515,000 on its statement of financial position, as of 31 December 2020. In order to address this, the Board is proposing to use the entire Share premium account of N1,852,748,000 to reduce the Company’s accumulated losses to N645,767,000 and consequently bring the Company a step further on its pathway to positive retained earnings”.

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