Recapitalisation: Access Holdings Arranges for Proposed N351.01bn Rights Issue
Access Holdings Plc says it has conducted a formal signing ceremony to initiate a rights issue offer aimed at raising N351.01 billion from its existing shareholders.
The holdings said this in a statement made available on Wednesday in Lagos. This came ahead of the bank’s recapitalisation directive by the Central Bank of Nigeria (CBN).
The CBN on March 28 raised the minimum capital base for banks with international authorisation to N500 billion, effective from March 31, 2026. The apex bank also increased the minimum capital base for commercial banks holding national authorisation to N200 billion, and for those with regional authorisation to N50 billion.
Merchant banks now have a minimum capital requirement of N50 billion, while non-interest banks holding national and regional authorisations must adhere to new minimum requirements of N20 billion and N10 billion, respectively.
Consequently, shareholders of the Holdings had at its second Annual General Meeting (AGM), on April 19 unanimously backed its plan to execute a capital raising programme of about 1.5 billion dollars.
They also approved the subset initiative to raise capital through a rights issue of ordinary shares to its shareholders.
The statement said the offer was part of the group’s strategy to enhance its working capital requirements, which included organic growth funding for its banking and non-banking subsidiaries.
It said under the rights issue, 17.773 billion ordinary shares of 50k each at N19.75 per share based on one new ordinary share for every two existing ordinary shares held as at June 7 would be offered.
The statement quoted Ms Bolaji Agbede, Acting Managing Director of the bank, to have said at the event that “the rights issue is a significant step in delivering the holdings 2023 to 2027 strategic plan”.
Agbede stated that the additional capital will enable the firm to maximise emerging opportunities and deliver long-term value to its shareholders. According to her, Chapel Hill Denham is the Lead Issuing House to the offer, while Atlas Registrars Ltd., will serve as registrars through the exercise.
She listed the joint issuing houses as Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa and Meristem Capital.
The managing director named other parties to the offer as Coronation Merchant Bank, Coronation Securities, Chapel Hill Denham Securities Ltd., FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Ltd, Network Capital Ltd.
She also mentioned, CSL Stockbrokers Ltd., Compass Investment and Securities Ltd., PAC Securities Ltd., Dynamic Portfolio, Chartwell Securities Ltd., Tiddo Securities Ltd., and Futureview Securities Ltd.
Agbede said that subject to the approval of the Securities and Exchange Commission (SEC), the Acceptance and Application Lists for the r8ghts issue were expected to open on Monday, July 8, 2024, and close on Thursday, August 8, 2024.
She further said the rights circular for the issue, which contains a provisional allotment letter and the participation form, would be mailed directly to shareholders of the group. Printed copies of the participation form can also be obtained at any Access Bank branch and the offices of the issuing houses during the offer application period.
All existing shareholders and prospective investors are encouraged to read the Rights Circular and Prospectus. Where in doubt, consult their stockbroker, fund/portfolio manager, accountant, banker, solicitor, or any other professional adviser for guidance before subscribing,” she said.
Access Holdings Plc is a multinational financial services group that offers commercial banking, lending, payment, insurance, and asset management services.
Established in 2022, Access Holdings Plc consists of the Access Bank Group, Access Pensions, a payment and switching services company, a digital lending company, and an insurance brokerage company. FG to Transform Nigeria Into $1trn Economy by 2030 – VP
