Connect with us

Latest

VFD Group Plans N30bn Capital Raise

Published

on

Spread the love

VFD Group Plc has announced its intention to raise N30bn in additional capital through share issuance, global depository receipts, commercial papers, loans, convertible and non-convertible instruments, medium-term notes, and bonds.

The Company Secretary of the firm, Gbeminiyi Shoda, disclosed that at the company’s annual general meeting held in Lagos State on Thursday.

According to Shoda, the move is aimed at bolstering the company’s financial base and supporting its ambitious growth plans.

She added that the capital raise would be executed in tranches, with specific terms, such as coupon or interest rates, maturity periods, and other conditions to be determined by the company’s directors, subject to regulatory approvals.

“That directors be and are hereby authorised to raise additional capital of up to N30bn through an offer by way of issuance of shares, global depository receipts, commercial papers, loans, convertibles, or non-convertibles. medium-term notes, bonds, and/or any other instruments, either as stand-alone or by way of a programme, in such tranches, series, or proportions, at such coupon or interest rates.

“Within such maturity periods and on such terms and conditions, including through the 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. The directors are and are hereby authorised to enter into any agreements and/or execute any other documents necessary for and/or incidental to effecting the resolutions above,” the company secretary stated.

As part of the capital raise, VFD Group’s board of directors had been authorised to enter into agreements and execute necessary documents to facilitate the fund-raising efforts.

That included engaging professional parties and performing all acts required to comply with regulatory directives.

The board assured shareholders that those measures would position the company to take advantage of emerging opportunities and enhance its market competitiveness.

In addition to the capital raise, the shareholders approved capitalising over N500m from the company’s balance to issue bonus shares to existing shareholders.

According to the firm, the bonus shares will be distributed at a ratio of four new shares for every share held, effectively increasing the company’s share capital and rewarding loyal investors.

Also, the Chairman of VFD Group, Olatunde Busari, highlighted the company’s performance for the fiscal year 2023, attributing those achievements to the unwavering support of shareholders and the dedication of the staff.

“The previous year was marked by significant milestones that have not only shaped the history of our company but also laid a robust foundation for accelerated performance in 2024. These achievements are a testament to the unwavering support and contributions of our esteemed shareholders and dedicated staff.

“The year was characterised by a global recession, a downturn that permeated economies globally, impacting businesses of all scales, from multinational corporations to small enterprises. Persistent inflation, exacerbated by ongoing supply chain disruptions and geopolitical tensions, eroded purchasing power and stifled investment. In response to inflation, central banks worldwide implemented interest rate hikes.

He noted that persistent inflation and supply chain disruptions had eroded purchasing power and stifled investment in the company, adding that the company leveraged its strategic restructuring to maintain stability and prepare for future growth.

“Despite these challenges, VFD Group remained steadfast and adaptable, leveraging our strategic restructuring to navigate the turbulent economic environment successfully,” he added.

Assuring shareholders of growth and sustainability, the VFD Group CEO, Nonso Okpala, stated, “Concerning the fine we paid previously, I and the board will make sure it does not repeat itself.”

Online reported that VFD Group had approved the establishment of a new Capital Market Holding Group, Anchoria Capital Group Limited, subject to regulatory approvals to retain its shares presently held in Anchoria.


Spread the love
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © 2023 Instant News Naija

× How can I help you?