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Why VFD Group seeks additional ₦30bn capital

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By Chioma Obinagwam

The Group Managing Director and CEO, Nonso Okpala, recently emphasized the Company’s dedication to maintaining a robust capital base to effectively navigate evolving market conditions. To support this commitment, The Group plans to raise an additional ₦30 billion, pending approval from our shareholders at the upcoming Annual General Meeting (AGM).

 

VFD Group told Confiance News in a statement signed by Head, Investor Relations of the group, Chidinma Chukwueke-Okolo on Thursday.

 

It noted that the plan to raise additional capital by the Board and Management of the Group Plc was born out of strategic decisions made during its recent board meeting held on Thursday, May 30, 2024.

 

“These decisions reflect our ongoing commitment to sustainable growth, prudent financial management, and maximizing shareholder value,” the statement explained.

“While the specific form of this capital raise, whether through debt or equity, will be disclosed in due course,” the company said, “This significant infusion will undoubtedly strengthen our financial position and support our future initiatives, acquisitions, and the growth capital required for our investee companies’ expansion.”

 

Confiance News gathered that the Board has approved the strategic sale of up to 75 percent of its stake in Abbey Mortgage Bank Plc, representing up to 30 percent of the bank’s outstanding shares.

 

“This decision aligns with our ongoing strategy to optimize our portfolio in response to market conditions. By taking this step, we aim to unlock significant value for our shareholders and strengthen our investment strategy. After careful analysis of market dynamics, we believe this move will enhance our ability to capitalize on future opportunities.

 

Additionally, it stated that the Board discussed the establishment of a Capital Market Holding Group, anchored by Anchoria Capital Group Limited.

 

It said that the strategic consolidation will encompass its interests in Anchoria Asset Management Limited, Anchoria Investment & Securities Limited, and Kairos Capital Limited.

Confiance News gathered that the synergies within the group are expected to enhance operational efficiency, improve service delivery, and position it for sustained growth in the capital market space.

 

“In line with our commitment to rewarding our existing shareholders, the Board has approved a scrip (bonus) issuance of four (4) new shares for every one (1) share held as of June 14, 2024. This move underscores our confidence in the company’s prospects and aligns with our unwavering commitment to shareholder value creation, as stated by our Group Chairman, Olatunde Busari.
We wish to affirm that our decisions are guided by a long-term vision to create enduring value for our stakeholders. We remain steadfast in our commitment to transparency, accountability, and excellence in all our endeavours,”

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