Access Holdings’ Shareholders Okay N2.1tn Capital Raising Plan, Others
Shareholders remember Wigwe, others
The shareholders of Access Holdings Plc, yesterday approved the management’s N2.1 trillion capital raising plan, among other key resolutions at the Pan-African’s 2nd Annual General Meeting (AGM) held in Lagos.
Out of deference and honour to their departed chairman, Mr. Bababode Odunkoya and Group Chief Executive, Dr. Herbert wigwe, the shareholders declined to scrutinise and comment on the 2023 Annual Report and Account of the company laid before them at the company’s second AGM.
They unanimously backed the Group’s plan to establish a capital raising programme of up to $1.5 billion (N1.73trillion at N1154.08/$) as well as the subset initiative to raise up to N365 billion, specifically, through a Rights Issue of ordinary shares to its shareholders.
The proceeds of the Rights Issue would be used to support on-going working capital needs, including organic growth funding for its banking and other non-banking subsidiaries.
The shareholders, who welcomed the new Chairman of the group, Mr. Aigboje Aig-Imoukhuede also approved N1.80 kobo final dividend payout per every N0.50 Kobo ordinary share for the 2023 financial year was approved, marking a 28 per cent improvement from the corresponding period in 2022.
The shareholders also ratified the appointments of Aigboje AigImoukhuede, Olusegun Ogbonnewo, and Ojinika Olaghere as Non-Executive Directors.
The appointment of AigImoukhuede as the Chairman of Access Holdings was praised by the shareholders, who pointed to his rich history of success with the institution, having transformed it into Nigeria's biggest lender by market value alongside Herbert Wigwe. Aigboje’s leadership was instrumental in driving the institution’s growth during the 2004 recapitalisation of the banking industry led by the Central Bank of Nigeria (CBN) under the leadership of its former Governor, Prof. Charles Soludo.
Speaking to journalists after the AGM, Aig-Imoukhuede noted that banking sector recapitalisation and how the Holdings would continue to deliver good returns on investment are two major issues confronting shareholders at the moment.
“I think on the issue of recapitalisation, first of all as a group, Access Holdings wholeheartedly endorses the recapitalisation signal by the CBN.
“Banks, particularly after a period of significant devaluation of the domestic currency, volatility in the exchange and interest rates regime are always encouraged to build up the capital buffers to ensure that whatever adverse effect within their balance sheet is a result of these dynamism changes in the environment will not affect their going concern.