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HomeCompany NewsWema Bank to seek shareholders' approval for N40 bln rights issue

Wema Bank to seek shareholders’ approval for N40 bln rights issue

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By Samuel Bankole

Nigeria’s Wema Bank Plc on Friday announced plans to seek its shareholders approval to raise N40 billion through rights issues to existing shareholders to enable the lender shore up its capital after a share reconstruction.

In a regulatory filing with the Nigerian Exchange Limited (NGX), the bank said following the successful conclusion of its share reconstruction, a Federal High Court in Lagos has ordered it to convene an Extra Ordinarily General Meeting for the purpose of seeking shareholders approval for a capital raise.

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The bank said with the approval of the shareholders, it intends to raise N40 billion through rights issues of two to three to existing share held by shareholders.

The bank had concluded a share reconstruction this year to reduce its authorized share capital in a bid to clean up its balance sheet and enhance its capital adequacy ratio through injection of fresh capital.

The EGM, slated to hold on December 31, will see the bank taking a bold step to shore up its capital base and raise its CAR above the present 13.2 percent above the regulatory threshold of 15 percent or close to it.

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