Zenith Bank Cancels Plan to Raise N100b

By Modupe Gbadeyanka

Zenith Bank Plc says it will no longer go on with its plans to raise about N100 billion from the capital market through public hearing, rights issue or any other method deemed fit by the board in local or international market or combination of both.

This comes barely 24 hours after shareholders at the company’s Annual General Meeting (AGM) in Lagos approved the board’s request to raise the amount to boost its operations.

In a statement issued in Lagos on Thursday, Zenith Bank said it decided to suspend the exercise due to weak capital markets and struggling economy.

Head of Investor Relations at Zenith Bank, Mr Michael Anyimah, was quoted in the statement as saying that, “The request for shareholders’ approval to raise fresh capital has been withdrawn.”

Mr Anyimah pointed out that the financial institution has strong buffers to support its operations in Nigeria.

In its 2016 audited results released few days ago, Zenith Bank posted a pre-tax profit of N156.8 billion, a rise from N125.6 billion in 2015.