Access Holdings Shareholders Approve $1.5 Billion Capital Raise in AGM

It has been reported that shareholders of Access Holdings Plc, during its last Annual General Meeting (AGM), held in Lagos State, Nigeria, approved the $1.5 billion capital raise on Friday last week. The company also plans to raise N365 billion through a rights issue. 

When asked about how the proceeds from the funding would be utilised, the Group Chief Executive Officer of Access Holdings, Bolaji Agbede, noted that its banking subsidiary (Access Bank Plc) would receive more allocation to meet the regulatory requirements from the Central Bank of Nigeria (CBN).

Related News:

• Access Holdings Profit Grows by 306% in 2023 FY

• Access Holdings Gives Aigboje Aig-Imoukhuede the Chairman Seat

• Access Holdings Plc Appoints Bolaji Agbede as Acting CEO

She said,

“Regarding the proceeds from the rights issue, which we hope to get about N365bn, we will give the bulk of it to the banking group to enable them to meet the CBN’s capital requirement. Part of what they are using it for is working capital requirements for investment in African subsidiaries as part of the growth in their international subsidiaries.

“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.

READ ALSO: How to Effectively Use Cold Mail to Land Your Next Job

Additionally, Mr Aigboje Aigboje Aig-Imoukhuede, the Chairman of the Group, stated that he is hopeful about the capital raise.

He said,

“We’re moving on to resolving the rights issue. We’ll take one minute to crave your indulgence at this junction. I appreciate your support for our predecessor company, Access Bank, and now Access Holdings.

“We have sought to raise capital. The amount we mention today is high and significant, and the capital-raising effort 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, in 2024, Access Bank will be much older, wiser, stronger, larger, and significantly respected by the capital market. Raising over N300bn is not much of a challenge.”

Aig-Imoukhuede also encouraged minority shareholders to take up their rights, saying,

“We are interested in shareholders, large and small, continuing with us on our journey. We have always had a unique relationship with the capital market, both 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?”

WIN N50,000 GIVEAWAY EVERY WEEK HERE!

After his speech, shareholders cheered him and said they were thankful for his appointment as Chairman of Access Holdings and optimistic that he would lead the company to greater heights.

Chief Sunny Nwosu, the Chairman Emeritus of the Independent Shareholders Association of Nigeria, announced this. He said,

“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 towards meeting its lofty targets.

“During his tenure as CEO, particularly during the recapitalization 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.”