Access Bank said on Tuesday it would seek approval from shareholders on Oct. 13 to raise 68 billion naira ($415.3 million) via a rights issue to support its lending business.
The top-tier lender plans to issue 7.64 billion shares at 8.90 naira each to existing shareholders.
Shares in Access Bank, down 0.1 percent so far this year, have been frozen at 9.59 naira pending the results of the shareholder vote, meaning investors can buy or sell only at that price on the stock market.
Proposed Rights Issue – Addendum to Notice of EGM
Access Bank Plc has notified The Nigerian Stock Exchange that further to the Notice of Extraordinary General Meeting of the Bank scheduled to hold on Monday, October 13, 2014 at 11.00 a.m. at Lagoon Restaurant, Ozumba Mbadiwe Avenue, Victoria Island, Lagos, the Bank is pleased to provide additional information to its shareholders as follows:
- Proposed Rights Issue on the basis of one (1) ordinary share for every three (3) fully paid ordinary shares held by shareholders of the Bank.
- Offer size of 7,640,449,438 (Seven billion, Six hundred and Forty million, Four hundred and Forty Nine thousand, Four hundred and Thirty Eight) ordinary shares of 50 kobo each
- Rights Issue price is NGN8.90 per share. The Rights Issue will raise approximately NGN 68 billion (before expenses), if all shareholders fully subscribe for their rights.
- The funds raised will be used to upgrade the Bank’s information technology platforms and branch network to enable it provide better service and further improve the working environment as well as improve its distribution channel infrastructure to enable it provide more efficient services to clients. The funds will also be used to augment the Bank’s working capital and support risk assets growth.
- The Qualification Date for the Rights Issue will be determined and the final date for receipt of applications for shares will be as stated in the Rights Circular.
- The rights are tradable and available to all Eligible Shareholders registered on the Qualification Date.
- Trading in the Rights Issue shares will commence on the first day of the Issue through till the closing date.
- The Issue will not be underwritten.
- A Rights Circular and Allotment Form will be sent to Eligible Shareholders in due course.