April 19, 2024
By By Kelechukwu Mgboji InvestAdvocate
Lagos (INVESTADVOCATE)-Shareholders of Access Holdings Plc gave their nod to the management’s N2.1 trillion capital raising plan alongside other key resolutions at the pan-African company’s 2nd Annual General Meeting (AGM) in Lagos on Friday.
The shareholders unanimously endorsed the Group’s proposal to initiate a capital raising program of up to $1.5 billion (equivalent to N1.73 trillion at N1154.08/$), as well as a subsidiary initiative to raise up to N365 billion through a Rights Issue of ordinary shares to existing shareholders.
The proceeds from the Rights Issue are earmarked to bolster ongoing working capital requirements, including funding for organic growth across its banking and non-banking subsidiaries.
The shareholders also approved a final dividend payout of N1.80 kobo per every N0.50kobo ordinary share for the 2023 financial year, in additional to the interim dividend adding up to N2.10 per 50kobo share representing a 28 percent improvement from the previous year’s dividend payout.
Additionally, shareholders ratified the appointments of Aigboje Aig-Imoukhuede, Olusegun Ogbonnewo, and Ojinika Olaghere as Non-Executive Directors.
Aig-Imoukhuede’s appointment as Chairman received accolades from shareholders, citing his successful track record with the institution, notably during the 2004 banking industry recapitalization led by the Central Bank of Nigeria (CBN) under the leadership of former CBN Governor, Prof. Charles Soludo.
Following the AGM, Aig-Imoukhuede addressed journalists, highlighting the banking sector recapitalization and the Group’s commitment to delivering favorable returns on investment as key concerns for shareholders.
Chief Sunny Nwosu, Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN), expressed enthusiasm at Aig-Imoukhuede’s return to the Chairmanship role, citing his past achievements in steering Access Bank through significant capital raises.
Chief Boniface Okezie, the Coordinator of Progressive Shareholders Association, told InvestAdvocate, that shareholders were ready to recapitalise the bank to meet new CBN capital base.
According to him, shareholders are already ahead of the apex financial industry regulator in terms of their preparedness to beefing up the bank’s capital base in line with regulatory requirement.
The Group’s full-year results for the period ending December 31, 2023, revealed a remarkable 335 percent surge in pre-tax profit to N729 billion from N167.68 billion in 2022.
Gross earnings also surged by 87 percent to N2.59 trillion from N1.39 trillion in 2022, with profit after tax witnessing a notable 306 percent growth to N619.32 billion from N152.20 billion in 2022.
Beginning in the latter half of 2024, Access Holdings will transition its global expansion strategy into a phase focused on consolidation and efficiency, aligning with its five-year plan to expedite the achievement of its 2027 strategic objectives.
The Group remains steadfast in its commitment to driving sustainable growth and delivering value to its shareholders while fostering a globally connected community and ecosystem, rooted in Africa, for the world.
