The board of FBN Holdings Plc, on Thursday hinted through the Nigerian Exchange Limited of plans for its Annual General Meeting, where, among others, it seeks shareholders’ consideration and approval to raise a total of N350bn as part of the special business at the meeting.
The capital raise transaction, according to the notice, is to be implemented “through the issuance of shares, by way of a public offering, private placement, rights issue in the Nigerian or international capital markets, at price(s) to be determined by way of a book building process or any other valuation method or combination of methods, in such tranches, series or proportions and at such periods or dates, coupon or interest rates, within such maturity periods and upon such other terms and conditions as may be determined by the Board of Directors (the “Directors”), subject to obtaining the approvals of the relevant regulatory authorities.”
Consequently, the directors propose that the company’s share capital be raised “by the exact number of ordinary shares which would be required upon determination of the terms of the capital raise and the Directors are authorised to pass resolutions for such increase, as well as to allot the new ordinary shares required in connection with the capital raise.”
Investdata News recalls that the Central Bank of Nigeria (CBN) had some months ago directed banks capitalise and raise their capital base to N500bn for those with international license. It had further order fresh capital for each bank according to their operational licences to enable them drive the $1tr economy envisaged by the federal government.
So far, Guaranty Trust Holding Company, Fidelity Bank Plc, Access Holdings, and FCMB Holdings are currently in the capital market shopping for fresh funds in compliance with the directive of the apex bank ahead of the two-year deadline.
Aside seeking approval for the fresh capital raising, the board of FBN Holdings also wants its shareholders to “consider and if thought fit,” approve “a change of the legal and brand names of the Company from FBN Holdings Plc and FBNHoldings to First Holdco Plc and FirstHoldco respectively.”
They are also to approve that the “change of legal and brand names should be extended to the subsidiaries of FBN Holdings Plc.”
