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New private investors to buy N11.17bn worth of Fidelity Bank stake

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Fidelity Bank staff arrested for diverting N137m customer’s money

Fidelity Bank has concluded plans to sell a significant stake in the company to private investors, as the Nneka Onyeali-Ikpe-led company is in need of capital to fund the financial institution’s operation.

The creditor is willing to sell 3.03 billion unissued shares of the company in a private placement, a document obtained by Ripples Nigeria, and dated September 30, revealed.

According to estimate of the sales by Ripples Nigeria, the private investors are expected to cough-up about N11.17 billion to acquire the 3.03 billion shares.

In the document, Fidelity Bank said the shareholders have approved the sale of stake in the company to the private investors.

“That in furtherance of the provisions of Section 124 of the Companies and Allied Matters Act, 2020 and the Companies Regulations 2021, and pursuant to Paragraphs 9 and 10 of the Articles of Association of the Company, the Board of Directors of the Company be and is hereby authorised to issue, by way of Private Placement, the 3,037,414,308 unissued Ordinary Shares of 50 kobo each in the share capital of the Company (being not more than 30% of the Company’s existing issued shares and paid up capital) to potential investors.” The document reads.

Read also: Nigerian stock market capitalization drops to losses in Fidelity Bank, FCMB

Fidelity Bank stated further, “That the Private Placement shall be carried out in conformity with applicable laws and subject to procurement of all regulatory approvals.

“That the members in recognition of the need to ensure that the Company’s share capital is aligned with the requirements under applicable laws, hereby waive their pre-emptive rights in respect of the 3,037,414,308 unissued Ordinary Shares of 50 kobo each, to be issued by the Company by way of Private Placement.”

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