Wema Bank to seek shareholders’ approval for N200 billion capital raise

Wema Bank Plc, one of the nation’s oldest commercial banks, will seek shareholders’ approval to raise N200 billion in capital at the group’s annual general meeting (AGM) scheduled to be held electronically on 28th May 2024.

This was contained in the group’s AGM notice seen by Nairametrics.

According to the notice, the bank intends to raise N200 billion or more through various means such as public offers, rights issues, and private placements to meet regulatory capital requirements and fulfill its business objectives, as stated in the notice.

The company also plans to increase its issued paid-up share capital from N6.429 billion to N25 billion by creating an additional 37.14 billion ordinary shares, each valued at 50 kobo, which will have equal rights with the existing shares.

The statement reads:

“That the directors be and are hereby authorize to raise additional capital in the sum of N200 billion or such other amount that would enable the company to meet Central Bank of Nigeria recapitalization directives for a National licensed bank and achieve its business needs through the issuance of securities comprising of any or a combination of ordinary shares, preference shares, convertible and /or non-convertible notes, bonds or any other instruments by way of any of. A public Offer, Rights Issue, and Private Placement or combination of such methods, in such tranches, series, or proportions at such dates and upon such terms and conditions, as may be determined by the directors, subject to obtaining the requisite approvals of the relevant regulatory authorities.That the issued paid-up share capital of the company be and is hereby increased from N6.429.077680.00 divided into 12,858,155,360 ordinary shares of 50 kobo each to N25, 000,000,000.00 divided into 50,000,000,000 ordinary shares of 50 kobo each by creating additional ordinary shares of 37,141,844,640 at 50 kobo each ranking pari-passu with the existing ordinary shares of the company”.

Other resolutions to be passed

At the upcoming AGM, the shareholders will also have the opportunity to consider and pass the following special resolutions:

That in the event of an under subscription to any Right Issue, the directors are authorized to offer the unsubscribed shares to interested existing shareholders on the same terms as and/or the right issue.That in the event of an under subscription to an offering of the shares of the company in accordance with the resolution (a) above, the power to take steps required to cancel any unallotted shares of the company or to further increase the share capital of the company to an amount sufficient to accommodate any transaction undertaken by the company to raise additional equity capital pursuant to the foregoing resolutions as may be necessary, is hereby delegated to the board of directors.That the directors be and hereby authorised to allot such ordinary shares, preference shares, convertible and/ or non-convertible notes, bonds, or any other instruments offered pursuant to the resolutions above, as may be deemed necessary and expedient to give effect to the above resolution subject to obtaining the approval of the relevant regulatory authorities.That the directors be and hereby authorized to take and implement such measures as shall be required for a company to fully comply with recapitalization directives of the Central Bank of Nigeria by way of a merger business combination, acquisition, take over, etc, subject to the approval of the relevant regulatory authorities.That the directors be and hereby authorized to appoint in relation to the above resolutions such professional parties and advisers to perform all such acts and do all such things as may be necessary to give effect to the above resolutions including without limitation to complying with the directives of regulatory authorities, among other things.

The MD/CEO of Wema Bank, Mr. Moruf Oseni, in a press statement, noted that the bank’s evolution from being Nigeria’s oldest indigenous bank to being at the forefront of innovation, pioneering Africa’s first fully digital bank, ALAT, has been a true story of resilience and transformation.

According to him, at 79, Wema Bank stands stronger than ever, and this achievement would not have been possible without the support of our customers and employees.

“We thank them for believing in the Wema vision, for entrusting their financial security to us, and for allowing us to contribute to their personal and professional aspirations. Their faith in us is deeply cherished, and we are honored to serve them.” “As we mark our 79th year today, we reaffirm our commitment to empowering lives through innovation and exceeding our customers’ expectations with unparalleled banking experiences tailored to their needs. Our pledge is to stand by our customers through every stage of life, offering enabling platforms to accelerate their growth and propel them to extraordinary heights,” he said.