The Board of directors and shareholders of VFD Group, a proprietary investment company, on Friday announced plans to raise capital worth N13.5 billion for expansion.
Of the total amount, N7.5 billion would be by various options left to the directors to decide but specifically N6.5 billion would be raised by way of private placement in line with regulations.
Olatunde Busari (SAN), Chairman, VFD Group
disclosed this at the extraordinary general meeting (EGM) held in Lagos, in accordance with all relevant COVID-19 guidelines and directives.
The first resolution passed at the meeting reads: “I hereby move that the Directors be and are hereby authorized to raise by way of a rights issue in such ratio and terms, conditions and dates to be determined by the Directors, or other methods, further capital of up to N7.5billion through the issuance of shares, global depository receipts, convertibles or non-convertibles, medium term notes, bonds, and/ or any other instruments either as a stand alone or by way of a programmes, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, and on such terms and conditions; including through book building process or such other processes all of which shall be as determined by the Directors, subject to obtaining the approvals of relevant regulatory authorities”.
“We see great opportunities in the country as you know VFD Group is one of those companies that have had astronomical growth. In line with that growth we think that an enhanced balance sheet should be one of our major priorities,” Busari said.
He said the group has considerations to expand within the financial services industry particularly with reference to application for a National banking license. “The Central Bank of Nigeria would always be excited to see an enhanced balance sheet that would also support our application”.
“One of our other major plans is enhancement of our structure, integration of our various offerings rendered by different companies. We plan for the next 10 years to build a very compelling ecosystem within the economy, a system that integrates all our subsidiary offerings and services under a very effective technological platform. So all these things require capital, enhanced balance sheet and that’s why we are doing this today,” said Nonso Okpala, Group managing director/CEO of the company.
The second resolution as read by the Chairman said: “I hereby move that the Directors be and are hereby authorized to raise additional capital of up to N6 billion through an offer by way of private/ special placement in such ratio and terms, conditions and dates to be determined by the Directors and through the issuance of 9,803,921 ordinary shares of N0.50kobo each at N612 per share subject to obtaining the approvals of relevant regulatory authorities”.