By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – Nigeria’s mid-tier lender, Sterling Bank Plc has priced its shares at N2.65 in its proposed fund raising drive, a statement from the bank said on Sunday.
Sterling Bank said it will hold an Extra-Ordinary General Meeting (EGM) in Lagos on Tuesday to seek its shareholders’ approval to raise fresh capital.
The lender affirmed the issue is to Messrs. Silverlake Investments Limited or such other identified strategic investor at a price of N2.65 per share or such other price as the directors may determine in the interest of the company and subject to other terms and conditions and at such times as the directors may deem fit.
To shore up its capital base, Sterling Bank is proposing to issue up to 7.0 billion ordinary shares of 50 kobo each via special or private placement.
Among other things, the bank expects the shareholders pass as a special resolution authorising the directors “to issue up to 7,471,698,113 ordinary shares of 50 kobo each from the company’s share capital by way of special/private placing.”
The resolution would also authorise the directors to, in respect of the private placing, appoint such advisers, professionals and parties that they deem necessary, upon such terms and conditions that they may deem appropriate.
According to the lender, the shareholders are also expected to pass a special resolution “that without derogation from the above, additional capital up to $200m or its equivalent in naira be raised through any or a combination of the following: equity, global depository receipts, quasi equity, convertible loans, medium-term notes, bonds and any other debt instrument(s), whether secured or unsecured, seniour or subordinated by way of a public offering, rights issue, private placement.”
‘’This is meant to be done either as a standalone transaction or by way of a programme, “in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, at such dates and time subject to such terms and conditions, including through a book building process or other process (es) all of which shall be as the Directors may deem fit and subject to the approval of the regulatory authorities,” the bank said.
Also, the bank seeks authorisation of the shareholders to take any action required to give effect to the resolutions, including but not limited to entering into agreements, undertakings, assignments, guarantees, arrangements or such other mechanisms with any party or parties in order to implement, finalise and give full effect to the aforesaid resolutions.
