Exchange Control Liberalised, permitting diversification of investments offshore.
Restructure
With effect from 1 January 1991 Botswana Insurance Company (Propriety) Limited (BIC) restructured its activities in order to comply with the Insurance Industry Act of 1987.
In terms of the restructure the assets and liabilities of the general insurance business of BIC were transferred to Botswana General Insurance Limited (BGIL), the business of which was the underwriting of all classes of general insurance. BIC was converted from a private to a public company and its name was changed to Botswana Life Insurance Limited (BLIL), and its business was solely underwriting life insurance and deposit administration and other administered pension schemes. The entire issued share capitals of BGIL and BLIL were transferred to Botswana Insurance Holdings Limited which had been incorporated the previous year, the shareholders of which were identical to the previous shareholders of BIC, and both BGIL and BLIL became its wholly owned subsidiaries. The Group consisting of Botswana Insurance Holdings and its two wholly owned subsidiaries collectively was known as Botswana Insurance.
Public Listing
BIHL was listed on the Botswana Share Market (now the Botswana Stock Exchange) on the 9th August 1991. As a result of the listing twenty five percent of the equity of BIHL was held by the general public comprising some 1500 individual and corporate shareholders, the balance of the equity was held by Botswana Development Corporation Ltd (17,85%), Sechaba Investment Trust Company Ltd (16,20%) St Paul UK Ltd (30,94%) and the Southern Life Association Ltd (10,01%).
The shares were floated at a price of P2-15 per share, on the first day. The issue was 273 percent over subscribed. |
