FBN Holdings Seeks Shareholder Approval for N350bn Capital Raise and Dividend Payment
FBN Holdings Plc has announced plans to seek shareholder approval for a substantial capital raise of up to N350 billion and the payment of dividends during its upcoming annual general meeting (AGM). The meeting is scheduled to take place virtually on August 22, 2024.
In a recent regulatory filing, the financial services conglomerate revealed its intentions to propose a range of measures to its shareholders. The meeting will include the presentation of the group’s audited financial statement for the fiscal year 2023, and will address director and chairman remuneration. The board has proposed setting the annual fees for directors at N50 million each and N63.7 million for the chairman.
The capital raise proposal, which requires approval from shareholders and relevant regulatory authorities, may be executed through various methods, including public offerings, private placements, or rights issues in both Nigerian and international capital markets. The exact price and valuation methods for the capital raise will be determined through a book building process or other valuation techniques.
Dividend Payment Plans
Should the shareholders approve the proposed dividend, it will be disbursed on August 23, 2024, to members listed in the Register of Members as of the close of business on August 13, 2024.
FBN Holdings’ move to seek approval for a significant capital raise signals a strategic effort to bolster its financial position and support future growth initiatives. The proposed N350 billion capital raise is substantial and suggests the company is gearing up for significant investments or expansions. This step aligns with the broader industry trend where financial institutions are fortifying their capital bases to enhance operational capacity and meet regulatory requirements.
The decision to seek approval for dividends alongside a major capital raise reflects a balance between rewarding shareholders and pursuing growth opportunities. By doing so, FBN Holdings aims to maintain shareholder confidence while simultaneously positioning itself for long-term success. The approval process will involve careful scrutiny from both shareholders and regulatory bodies, ensuring that the capital raise and dividend plans align with the company’s strategic goals and regulatory compliance.
The proposed actions by FBN Holdings demonstrate a proactive approach in managing its financial health and strategic growth, which could potentially strengthen its market position and investor appeal in the competitive financial services sector.
