- Insurance underwriting company Ensurance (ENA) calls shareholders to a meeting on July 28, 2021, to vote on an acquisition and a share consolidation
- Last month, Ensurance signed a deal to purchase Australian boutique underwriting agency TK Specialty Risks
- The company is now seeking approval to issue $2.5 million of consideration shares for the business as it looks to bolster its Australian presence
- Additionally, Ensure will put a resolution to shareholders proposing a 1-for-10 share and option consolidation to simplify the company’s capital structure
- ENA is trading 19.1 per cent higher at 2.5 cents at 10:23 am AEST
Ensurance (ENA) had called a general meeting for July 28, 2021, to put two resolutions to shareholders: one relating to an acquisition and the other to a proposed share consolidation.
The acquisition
The insurance underwriting company has operations in the United Kingdom and Australia, and last month revealed a deal to bolster its Australian presence.
Ensurance signed an agreement to acquire Australian boutique underwriting agency TK Specialty Risks from its sole shareholder for $2.5 million worth of ENA shares.
Established in 2015, TK Specialty Risk offers professional and financial lines insurance and now has a network of more than 70 insurance broking houses.
The capital consolidation
The second resolution Ensurance is seeking approval for is a proposed 10-for-1 consolidation of its shares, options and performance rights.
If green-lit, the consolidation would occur after the issue of consideration shares for the TK Speciality Risk acquisition.
Ensurance’s resultant capital structure would include around 70.5 million shares, 1.5 million unlisted options and 2.5 million performance rights.
ENA is trading 19.1 per cent higher at 2.5 cents at 10:23 am AEST.