By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s tier one lender, Access Bank Plc late September said its proposed N68 billion Rights Issue is to shore up its capital base and expand its operations.

Shareholders of the bank have endorsed this move at an Extraordinary General Meeting (EGM) held October 13. The lender will issue 7.640 million ordinary shares of 50 kobo each at N8.90 kobo per share.

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.

Below are the 10 reasons shareholders must take up their Rights in the bank according to Obinna Nwosu, group deputy managing director (GDMD) of Access Bank at a media parley in late September.

• Tier 1 Bank with Robust financial indicators

• Enlarged resource base with strong upside potentials

• Credible leadership with a clear focus on value creation for shareholders

• Strong returns for investors –Capital appreciation & dividend payout

• Attractive market price trading at a 0.9x discount to book value

• Strong corporate governance and shareholder management practices

• Window of opportunity in rapidly expanding and consolidating banking sector, backdrop of stable economy

• Demonstrated capacity in integrating and extracting value from acquisitions

• Actively traded stock with a robust shareholder base

• Track record of strong performance; kept every promise made since 2002