Royal Exchange gets shareholders nod to raise N2.16b on rights issue
Royal Exchange Plc has secured the approval of its shareholders to raise N2.161 billion through rights, subject to regulatory approvals.
In this vein, the company is to issue to existing shareholders 3,087,222,044 ordinary shares of 50kobo each on the basis of three (3) new ordinary shares for every five (5) ordinary shares held in the company (Rights issue), on such other term and condition as the Directors may deem fit to determine.
This was part of the special business approved at the Company’s 53rd Annual General Meeting held in Lagos.
“That, subject to obtaining the approval of the relevant regulatory authorities the Directors of the company (the ‘Directors’’) be and are hereby authorized to raise equity capital of N2,161,055,431 (two billion, one hundred and sixty- one million, fifty-five thousand, four hundred and thirty – one naira only) by way of issuing to existing shareholder 3,087,222,044 ordinary shares of 50kobo each on the basis of three (3) new ordinary shares for every five (5) ordinary shares held in the company (Rights issue), on such other term and condition as the Directors may deem fit to determine. That the provisionally allotted shares be offered to existing shareholders at a price 70kobo per share”.
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“According to sub-sections of the special business, it was agreed that in the event of an under – subscription of any rights issue undertaken by the company, the shareholders hereby waive their pre-emptive rights to any unsubscribed shares under the rights issue and the Directors are hereby authorized to issue such shares to interested investors, as far as practicable, on the same terms as the right issue.”
“That the directors of the company be and are hereby authorized to do all acts and things and to approve, sign and/or execute all document, appoint such professional parties and advisers, perform all such other acts and do all such things as may be necessary to give effects to the above resolutions, including without limitation, complying with the directives of any regulatory authority.”
Speaking at the AGM, Ken Ezenwani, chairman board of directors said, in the medium term, the company is taking proactive measures to remain relevant in the face of both the domestic and global economic challenges.
“We are deploying strategies, which will make us responsive and adaptive to the economic challenges and meet the shareholders yearning and expectations.”
He said the company will continue to look its subsidiaries to make them productive, while exiting from those that are not contributing adequately the group.