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Wema Bank seeks to raise N40bn from shareholders

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Wema Bank seeks to raise N40bn from shareholders

Wema Bank is to raise N40 billion from its sharesholders as the company seeks funds from the capital market, the board of directors revealed in a statement on Tuesday.

The decision to raise capital was concluded upon during Wema Bank’s 2021 Extra-Ordinary General Meeting held on December 31, 2021, but disclosed to the public in a filing to the Nigerian Exchange Group.

It was gathered that the N40 billion would be secured by way of rights issue to the existing shareholders, who will be issued two new shares for every three shares they hold in the reconstructed capital of the lender.

Read also: Wema Bank denies merger, acquisition claim months after CFO hint

“That following the completion of the Bank’s share reconstruction exercise, the Board of Directors be and is hereby authorised to raise capital of up to NGN40,000,000,000 by way of a rights issue to the existing shareholders of the Bank by issuing two new shares for every three shares held in the reconstructed capital of the Bank (“Rights Issue”), subject to obtaining relevant regulatory approvals” The statement reads.

Wema Bank added, “That following allotment by the Board of Directors of the shares, the shares issued by the Bank pursuant to the Rights Issue or any unsubscribed shares disposed of by the Directors in accordance with Resolution 3 above be listed on the floor of the Nigerian Exchange Limited.”

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