By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s tier one lender, Access Bank Plc on Friday said it will open its China unit mid-October; as it’s seeks expansion to the Middle East and Asia, Obinna Nwosu, group deputy managing director (GDMD) of the bank disclosed to Journalists in Lagos.
This is coming on the heels of the proposed Rights Issue of N68 billion of the Nigeria’s tier one lender.
Nwosu said funds to be raised from the proposed Rights Issue will be used for expansion purposes.
“Now to talk specifically, the money that would be raised will be used for the bank’s expansion. Some will be used as working capital and then in keeping with our international bank and African strategy, we will also continue to expand.
“It may interest you to know that already, we have set up a unit in China, which will start operation in the middle of October, everything is in place, as a matter of fact, I actually have direct responsibility for it. So, taking from there, we would also expand to other markets; probably around the Middle East and other parts of Asia.
Similarly, the Access Banks group deputy managing director in a reaction to a question on further expansion in Africa said the lender is also targeting to open shops in viable economies like Kenya and Angola.
The Nigerian Stock Exchange (NSE) on September 15 said it has granted anticipatory approval for the shares of bank to be placed on technical suspension.
Following this, the lender on September 19 announced the Quotations Committee of Council of the NSE has granted final approval to the Bank, and it would hold an Extraordinary General Meeting (EGM) on Monday, October 13, 2014 to seek its shareholders’ approval for the board of directors to raise additional equity capital in the sum of up to N68 billion by way of a Rights Issue.
The board of the lender said it believes that the technical suspension is in the overall interest of its shareholders and will preserve their value, on account of the proposed corporate action.
Access Bank had said in an issuer’s announcement that it would open its proposed Rights Issue at N8.90 kobo per share and will issue 7.640 million ordinary shares of 50 kobo each.
The lender said the Rights will be on the basis of one (1) ordinary share for every three (3) fully paid ordinary shares held by shareholders of the bank.
At the close of transactions at the Nigerian bourse, shares price of the lender gained 14 kobo as it opened at N8.76 kobo and closed N8.90 climbing up 1.60 percent.
