VFD Group Plc, at its recent board meeting, has planned to raise an additional N30 billion pending approval from shareholders at the upcoming Annual General Meeting (AGM).
The plan is a reflection of its ongoing commitment to sustainable growth, prudent financial management and maximising shareholder value.
The Group Managing Director and CEO, Nonso Okpala, recently emphasised the company’s dedication to maintaining a robust capital base to effectively navigate evolving market conditions.
The company noted that while the specific form of this capital raise, whether through debt or equity, will be disclosed in due course, the infusion will strengthen its financial position and support its future initiatives, acquisitions and the growth capital required for investee companies’ expansion.
The Board also approved the sale of up to 75 percent of its stake in Abbey Mortgage Bank Plc, representing up to 30 percent of the bank’s outstanding shares.
The decision aligns with the company’s ongoing strategy to optimise its portfolio in response to market conditions. By taking this step, VFD Group aimed to unlock value for its shareholders and strengthen its investment strategy.
“After careful analysis of market dynamics, we believe this move will enhance our ability to capitalise on future opportunities,” it noted.
Additionally, the Board discussed the establishment of a Capital Market Holding Group, anchored by Anchoria Capital Group Limited. The consolidation will encompass the company’s interests in Anchoria Asset Management Limited, Anchoria Investment & Securities Limited, and Kairos Capital Limited. The synergies within this group are expected to enhance operational efficiency, improve service delivery and position it for sustained growth in the capital market space.
In line with its commitment to rewarding existing shareholders, the Board has approved a scrip (bonus) issuance of four new shares for every one share held as of June 14, 2024. The move underscores confidence in the company’s prospects and aligns with the company’s commitment to shareholder value creation, as stated by the Group Chairman, Olatunde Busari.
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