Access Holdings shareholders approve $1.5bn capital raise

Shareholders of Access Holdings Plc, Annual General Meeting (AGM) held in Lagos on Friday have unanimously approved the group’s plan to establish a capital raising programme of up to $1.5 billion as well as the plan to raise up to N365 billion through a rights issue.

On the utilisation of the proceeds from the rights issue, the Group Chief Executive Officer of Access Holdings, Bolaji Agbede, explained that the banking subsidiary would be getting a huge chunk of it to meet the regulatory requirements of the apex bank.

“In terms of the proceeds from the rights issue which we are hoping to get about N365bn, we will be giving the bulk of it to the banking group to enable them to meet the CBN’s capital requirement. Part of the things that they are using it for is as working capital requirements for investment in African subsidiaries as some of the growth in the international subsidiaries that they have.

“If you look at all the headwinds that are coming along, it is important that you have a robust capital plan and this is one of those things that would help them. The other thing that we will also be doing is that some of the amount, not as much as the banking group of course would be going into the non-banking subsidiaries as well,” she said.

The Chairman of the Group, Aigboje Aig-Imoukhuede, while being optimistic about the capital raise recalled that in 2004, bank raised funds successfully.

“We’re moving on to the rights issue resolution. At this junction, I think we’ll take one minute to crave your indulgence as I appreciate you all for the support you have given our predecessor company,  Access Bank, and of course now Access Holdings.

“We have sought to raise capital. The amount that we mention today is high and significant and the capital-raising effort that we are pursuing is a significant step into the future. I would like to remind shareholders that between 2004 and 2007, our team when I was CEO raised $2 billion of common equity capital. Therefore, come 2024, Access Bank  is much older, much wiser, much stronger, larger and significantly respected by the capital market, really raising over N300bn is not much of a challenge,” he said.

Aig-Imoukhuede,  therefore encouraged minority shareholders to take up their rights, saying, “We are interested in shareholders; large, small continuing with us on our journey. We have always had a unique relationship with the capital market locally and internationally. They have always supported us when we come up with good reasons and the performance that would be delivered after such capital raising efforts, so we signalled to the market first that we would be doing a rights issue, what does that mean?

Meanwhile, shareholders applauded the appointment of Aig-Imoukhuede as the chairman of Access Holdings, noting his history of success with the institution.

Speaking on behalf of others, Chief Sunny Nwosu, Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN) stated: “We are thrilled with Aigboje Aig-Imoukhuede’s return to the role of Chairman. His proven track record, experience, and strategic insights position him as the ideal leader to steer Access Holdings toward meeting its lofty targets.

“During his tenure as CEO, particularly during the recapitalisation directive by the CBN, he steered Access Bank to raise an impressive $2 billion and this demonstrates his capacity to, once again, lead Access Holdings towards successfully achieving the objectives of our planned Capital Raise and Rights Issue targets,” Nwosu said.

ALSO READ: Olubadan-designate, Oba Olakulehin, attends first religious function after nomination