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FBN Holdings moves to raise N300bn through private placement, rights issue

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First Bank Nigeria (FBN) Holdings has announced plans to sell shares to private investors and existing shareholders to raise N300 billion.

This was contained in a notice sent to the Nigerian Xchange (NGX) on Monday.

The company noted that it would hold an Extraordinary General Meeting (EGM) on April 30 to deliberate on the proposal to raise funds.

According to the company, the capital raise transaction shall be by issuance of shares via a public offering, private placement and rights issue in the Nigerian or international capital markets.

“To consider and if thought fit, pass the following as ordinary resolutions of the company: That the company be and is hereby authorised to undertake a capital raise of up to N300,000,000,000.00 (Three hundred billion naira),” FBN Holdings said.

“The capital raise transaction shall be by Issuance of shares via a public offering, private placement, rights issue in the Nigerian or international capital markets, at prices to be determined by way of a book building process or any other valuation method or combination of methods, in such tranches, series or proportions and as such periods or dates, coupon or interest rates, within such maturity periods and upon such other terms and conditions as may be determined by the board of directors {the ‘Directors’), subject to obtaining the approvals of the relevant regulatory authorities.

READ ALSO:FBN Holdings’ investor relations head, Tolu Oluwole, sells off shares, shareholders suffer losses

“That the capital raise referred to in resolution {a) above may be underwritten on such terms as maybe determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.

“That the directors be and are hereby authorised to undertake all necessary actions to secure the listing and admission to trading of securities issued pursuant to the foregoing resolution on the official list of the Nigerian Exchange Limited, and/or on any other relevant securities exchange(s) or market(s).

“That the directors be and are hereby authorised to appoint such professionals parties and advisers and to perform all such other acts and do all such other things as may be necessary, to give effect to the above resolutions, including without limitation, executing necessary documents in connection with the capital raise, determining the final structure of the capital raise, interfacing and complying with the directives of any regulatory authority.”

FBN Holdings said after the completion of procedures for allocating the new ordinary shares, the memorandum and articles of association of the company will be amended as necessary to reflect the company’s newly issued share capital.

By: Babajide Okeowo

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