The board and management of VFD Group Plc have concluded plans to inject new capital into the company while also safeguarding the interest of shareholders.
The company unveiled this during a recent board meeting held on Thursday, May 30, 2024.
These decisions reflect the company’s ongoing commitment to sustainable growth, prudent financial management, and maximizing shareholder value.
Nonso Okpala, the Group Managing Director and CEO, emphasised the company’s dedication to maintaining a robust capital base to effectively navigate evolving market conditions.
He said: “To support this commitment, The group plans to raise an additional N30 billion, pending approval from our shareholders at the upcoming Annual General Meeting (AGM).
“While the specific form of this capital raise, whether through debt or equity, will be disclosed in due course, this significant infusion will undoubtedly strengthen our financial position and support our future initiatives, acquisitions, and the growth capital required for our investee companies’ expansion”.
He added that the board has also approved the strategic sale of up to 75 per cent of its stake in Abbey Mortgage Bank Plc, representing up to 30 per cent of the bank’s outstanding shares.
“This decision aligns with our ongoing strategy to optimize our portfolio in response to market conditions. By taking this step, we aim to unlock significant value for our shareholders and strengthen our investment strategy.
“After careful analysis of market dynamics, we believe this move will enhance our ability to capitalise on future opportunities”, he added.
Additionally, the board discussed the establishment of a capital market holding group, anchored by Anchoria Capital Group Limited.
This strategic consolidation will encompass the company’s interests in Anchoria Asset Management Limited, Anchoria Investment & Securities Limited, and Kairos Capital Limited.
The synergies within this group are expected to enhance operational efficiency, improve service delivery, and position us for sustained growth in the capital market space.
“In line with our commitment to rewarding our existing shareholders, the board has approved a scrip (bonus) issuance of four new shares for every one share held as of June 14, 2024. This move underscores our confidence in the company’s prospects and aligns with our unwavering commitment to shareholder value creation, as stated by our Group Chairman, Olatunde Busari.”
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