Secure Electronic Technology Plc (SET Plc), formerly known as National Sports Lottery, is set to seek approval from its shareholders for a share reconstruction and recapitalisation proposal following a net loss of N121.03 million in 2024. The company, a key player in the lottery and gaming technology space, disclosed the move in a notice ahead of an extraordinary general meeting (EGM) scheduled for next Wednesday in Lagos.
Founded in 2001, SET Plc was granted a 30-year exclusive licence by the Nigerian Federal Government to operate the National Lottery. Despite its solid revenue growth of 24% year-on-year, reaching N4.35 billion in 2024, the company has struggled with a significant drop in its cash flow from operating activities, falling by 253% to a negative N34.21 million.
The proposed share reconstruction, introduced by Apex Alpha Acquisitions Limited, involves reducing the company’s issued share capital from N2,815,770,000, represented by 5,631,540,000 ordinary shares, to N1,407,885,000, represented by 1,407,885,000 ordinary shares of 50 kobo each. A key feature of the reconstruction is the conversion of four existing shares into one, with a corresponding proportional increase in the share price, ensuring that the value of one converted share reflects the market price of four pre-reconstruction shares.
SET Plc’s directors are seeking approval from both regulatory authorities, including the Federal High Court, Securities and Exchange Commission, and other relevant bodies, to execute the reconstruction and recapitalisation plan. This strategic move is expected to address the company’s financial challenges and strengthen its position in the market.
Shareholders will vote on the resolution at the upcoming EGM. Should the proposal pass, SET Plc aims to revitalize its operations and improve profitability in the coming years.
