VFD Group has disclosed plans to embark on an additional capital raise of N30,000,000,000 (Thirty Billion Naira), and the Strategic Portfolio sale of 30% of its shares in Abbey Mortgage Bank Plc.
The capital raise is subject to shareholders’ approval at the upcoming Annual General Meeting (AGM).
This followed a meeting of the Board of Directors of VFD Group Plc which held virtually on Thursday, 30th May 2024 as scheduled via Microsoft Team.
The Board also approved the creation of a Capital Market Holding Group- Anchoria Capital Group Limited subject to relevant regulatory approvals to hold its shares currently held in Anchoria Asset Management Limited, Anchoria Investment & Securities Limited, and Kairos Capital Limited. This will aid the strategic positioning of the Capital Market entities within the Group.
There will also be a Bonus Shares Issuance or scrip (bonus) issuance of four (4) new shares for every one (1) share held, as approved based on the 2023 Audited Financial Statements (2023 AFS) filed with The Exchange on 25 May 2024.
The Company had inadvertently omitted to announce the issue of bonus shares while filing its 2023 AFS but now wishes to expressly state that following the Boards approval, the bonus issuance will be presented to shareholders for approval at its upcoming Annual General Meeting.
The Board resolved to hold the 8th Annual General Meeting of VFD Group plc on June 27th, 2024 at 11am.
Expected credit losses (ECL) on loans and advances to customer was a key audit matter in the 2023 consolidated financial statements of VFD Group, according to its auditors PricewaterhouseCoopers.
This is because the measurement of impairment allowance is highly subjective and involves the exercise of significant judgements and the use of complex models and assumptions.
The gross balance of loans and advances extended by VFD Group to customers as at 31 December 2023 was N21.322 billion and the associated impairment was N1.789 billion.
VFD Group reported a loss of N750m as at December 2023, as investment and other operating expenses surged.
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