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Recapitalisation: Access Holdings woos investors with N351bn rights issue

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COMFORT EKELEME

 

Chairman of Access Holdings Plc, Mr. Aigboje Aig-Imoukhuede has urged shareholders to participate in the group’s rights issue offer, aimed at strengthening its bond with them.

Access Holdings opened its rights issue offer on Monday with 17.77 billion ordinary shares of N0.50 each for N19.75 per share, to close on Aug. 14.

The proceed from the issue will be used to enhanced Access Bank ‘s capital adequacy, in compliance with the regulatory capital requirements, thereby deepening the Bank’s ability to withstand systemic shock.

It will also strengthen the Bank’s fortress balance sheet, allowing it to meet it’s and other banking subsidiaries ‘ growth needs, in line with the group’s medium terms strategic objectives.

Aig-Imoukhuede while speaking Tuesday in Lagos at the group’s “Facts Behind The Rights Issue” presentation held at the Nigerian Exchange Ltd. (NGX) said this translates to a capital raise of N351 billion, following approval from the Securities and Exchange Commission (SEC).

According to him, the offer is issued based on one new ordinary share for every two existing ordinary shares held as of June 7.

“We did a rights issue and a rights issue alone to signal to the world that our pact with our shareholders can never be broken.

“Since 2002, our shareholders have stood with us through thick and thin. We could have had all types of offerings to benefit the investing public, but we said no.

“The first step will be the step that we took in 2002 with people like you, and I know that you will stand with us again. Please take up your rights,” he said.

He noted that the rights issue, though a financial exercise, was a continuation of the Access Bank story.

Aig-Imoukhuede lauded the NGX for providing a platform that enables entrepreneurs, dreamers, visionaries and institutions to connect with shareholders or investors based on their understanding of the strategy.

Also speaking, Managing Director of Access Bank Plc, Mr Roosevelt Ogbonna said the group’s target was for its bank subsidiary to become “the world’s first truly African global bank in the financial services sector.”

Ogbonna stated that the bank intends to power trade and payment across the continent and become a platform that connects the African continent, catalysing capital and business.

 

He said, the group was focusing on continents that were profitable for the bank from an economic point of view, led by Southern Africa, followed by East Africa, West Africa, and Central Africa.

 

According to him, Access Holdings was built on very strong governance, with a Board that has guided the narrative and engagement between the financial institution and its stakeholders.

Looking ahead, he said that the group would build several ecosystems that would operate on its platform, such as the mobility and housing ecosystems.

“We are very excited about what the future holds. The bank will be the core of the financial services Holdings that we are building, and we will also create significant value for our larger stakeholders,” he said.

Earlier in his address, the Chairman of NGX Group Plc, Dr Umaru Kwairanga, recognised the efforts of Aig-Imoukhuede and the late Herbert Wigwe in transforming a struggling bank into the biggest financial institution in Nigeria and one of the biggest in Africa in just two decades.

Kwairanga stated that Access Holdings had focused on first-class human resources, processes, and services while ensuring consistency for such a large conglomerate from top to bottom.

“Ordinarily, I would say Access Holdings does not have to broadcast why its offer is a good buy given the heavy rewards that average investors have enjoyed over the years in the form of regular dividends and capital appreciation.

On our part at the Exchange, we are committed to doing all that is necessary to ensure that all issuances like Access Holdings’, both wholesale and retail, have a seamless and efficient interface during this recapitalisation period,” he said.

The chairman expressed optimism about a bright future for the group while charging shareholders to partake in the rights issue.

The lead issuing house for Access Holding rights issue is Chapel Hill Denham Advisory Ltd., while Atlas Registrars Ltd. will serve as the Registrars to the offer.

 

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