By Aduragbemi Omiyale
The capital raising plan of Access Holdings Plc was on Friday, April 19, 2024, approved by shareholders at the company’s Annual General Meeting (AGM).
In a bid to meet the new minimum capital requirements set for banks by the Central Bank of Nigeria (CBN), Access Holdings plans to get about $1.5 billion, with the subset initiative to raise up to N365 billion, specifically, through a rights issue of ordinary shares to its shareholders.
The banking sector regulator in Nigeria has given financial institutions about 24 months to increase their capital base to protect the industry. Lenders in the category of the company’s banking subsidiary, Access Bank, must jack their capital base higher from N25 billion to N500 billion, and must within one month present a template of how they hope to meet the new target.
At the AGM today, the board asked shareholders to approve the new capital raising framework and convinced by the viability of the plan, it was authorised by investors, who also approved the proposed N1.80 per share dividend for the 2023 financial year.
The cash reward proposed by the board for the fiscal year is 28 per cent higher than the amount paid to investors in the corresponding period in 2022.
The shareholders commended the board for the dividend and also lauded the appointment of Mr Aigboje Aig-Imoukhuede as the Chairman of Access Holdings.
It was the return of the former banker to the firm as he left the organisation some years ago as the chief executive. He left the position for his late business partner, Mr Herbert Wigwe, who died early this year in a helicopter crash in the United States.
“We are thrilled with Aigboje Aig-Imoukhuede’s return to the role of Chairman. His proven track record, experience, and strategic insights position him as the ideal leader to steer Access Holdings towards meeting its lofty targets.
“During his tenure as CEO, particularly during the recapitalisation directive by the CBN, he steered Access Bank to raise an impressive $2 billion in capital, and this demonstrates his capacity to, once again, lead Access Holdings towards successfully achieving the objectives of our planned capital raise and rights issue targets,” the Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu, said as the appointment of Mr Aig-Imoukhuede was ratified at the AGM.
In the fiscal year under review, Access Holdings grew its gross earnings by 87 per cent to N2.59 trillion from N1.39 trillion, expanded its profit before tax by 335 per cent to N729 billion from N167.68 billion, and increased its profit after tax by 306 per cent to N619.32 billion from N152.20 billion.
