WEMA Bank Plc says it is considering the acquisition of a fintech firm or a merger with another commercial bank.
Speaking on Friday in Lagos during the company’s half-year 2021 investors/analysts presentation, Moruf Oseni, the bank’s deputy managing director, said a merger and acquisition (M&A) was part of the bank’s plan to ensure organic growth.
Oseni said the acquisition is not limited to the financial sector space.
“In organic growth, there is a possibility of a combination; either you merge or you acquire, and this acquisition is not limited to acquiring another financial player in this space or a fintech,” Oseni said.
“We are looking at all possible options, whether you like it or not, no matter how efficient you are. In this game, we are playing skill to skill, and we also have huge aspirations to scale up in the shortest possible time.”
Oseni also announced Wema Bank’s plan to sell shares to existing shareholders to raise additional capital of N40 billion by September.
He said the capital raise would give the bank an expanded base of business over the coming years to compete favourably in the industry.
“The rights issuance is expected to hit the market in September, this month of August is for us to have a court-ordered meeting to get shareholders together and agree on the scheme of the arrangement,” he said.
He said the bank would embark on a road show from next week to sensitise shareholder groups and associations on growth plans and capital raise.
Oseni explained that the bank would reduce its shares in issue before embarking on the rights issue to ensure enhanced growth for shareholders.
“Wema Bank today has a large number of shares in issuance, but before we float the right issue, we need to get the shareholders to reduce the shares in issue and on the back of that, we then issue those rights,” Oseni said.
“This will not change the shareholding structure of the shareholders.
“We just want to manage the number of shares in issue, and that will impact on our ratios. It makes sense to have more efficient shares in issue before doing the rights issuance.”
In its half-year unaudited financial report, the bank posted a pre-tax profit of N4.30 billion, a 149 per cent growth.
It also recorded N39.82 billion as gross earnings from N37.95 billion posted in the first half of 2020.
On Friday, the bank’s shares dipped by 2.3 per cent to N0.87 on the Nigeria Exchange Limited (NGX).
Meanwhile, in furtherance of its commitment to women’s empowerment and the transformative impact of empowered women in society, Wema Bank Plc is partnering with SheCan Nigeria to organise a workshop with a goal to help women realise their potentials and develop capabilities to achieve success in society.
SheCan Nigeria is a movement for today’s woman to realize her potential and develop her capabilities to achieve success through collaboration and empowerment and to become an active player and contributor in our world today.
The partnership between Wema Bank Plc and SheCan Nigeria in previous times has produced pieces of training and workshops where women have gotten support and mentorship in various areas from tech, crafts, education, etc.
According to Funmilayo Falola, Head, Marketing Communications and Investor Relations “this year, the conference will address the changing needs and growing demands of today’s world. “This special edition will focus on addressing relatable issues that deal with career growth/swap and development, job transition, mid-life crisis, how to do more in business, preparation for the next big role, venturing into male-dominated sectors/fields,” she said.
Funmilayo further explained that this year’s event “will bring together successful women from different fields and disciplines and coaches to ensure an all-around view of interest in the life and season of our world.
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