FBN Holdings Shareholders Approve N150bn Rights Issue

Shareholders of First Bank of Nigeria Holdings (FBNH) have approved the appointment of Lagos businessman, Mr. Femi Otedola as a non-executive director of Nigeria’s oldest financial services group.

The approval was given at yesterday’s Annual General Meeting (AGM) of the company.

The shareholders also okayed increase in authorised share capital and a proposed N150 billion rights issue, with mandates to the board of directors to dictate the terms and conditions of the rights as well as dispose off rights not taken up during the period.

Two main issues – Otedola directorship and new capital raise were at the heart of long-running intrigues around the AGM, which pitted pro-Otedola shareholders against renowned business mogul and former chairman of the bank, Mr. Oba Otudeko.

At the AGM monitored by The Nation, the shareholders approved all resolutions, including the approval of the audited financial statements and accounts for the year ended December 31, 2022, payment of a dividend per share of 50 kobo and all other ordinary businesses.

Also, Executive Director, Finance, FBN Holdings, Mr Samson Oyewale Ariyibi, who was appointed by the board and approved by the CBN in 2022 was presented to shareholders and was approved.

All the regulatory bodies, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and Nigerian Exchange (NGX) monitored the meeting, in line with extant rules.

A post-AGM regulatory filing at the NGX also affirmed that all the resolutions on the agenda of the meeting were approved by the shareholders.

Speaking at the virtual AGM, Chairman, FBN Holdings Plc, Alhaji Ahmad Abdullahi, restated the group’s commitment to innovate and leverage opportunities to build on its performance and deliver increasingly better values to stakeholders.

He said the performance of the group highlighted the success of key initiatives over the years.

Abdullahi said: “The group actively develops targeted initiatives to strengthen its capacity to create value greater than the sum of the individual parts. At FBN Holdings, technology and innovation are at the core of what we do.

“We recognise the competitive advantage innovation affords us and ensure it takes the front seat in the design, development and enhancement of our products and services.”

The Group Managing Director of the company, Mr. Nnamdi Okonkwo, assured shareholders that the group remains on a good trajectory, noting that the half-year performance shoed that they will receive better returns this year.

He underscored the need for additional capital pointing out that while the group is on a strong financial pedestal, it needs to be proactive.

He said: “All businesses are vulnerable to changes and we must build a strong capital so that our going concern will not be threatened.

“Specifically, we need more capital to take advantage of attractive business opportunities which of course translates into profit and also be ready for Basel III that is expected to kick-in any moment from now.

“We also need to strengthen our balance sheet for growth. We wanted to make it clear that the capital raising exercise is for the interest of shareholders that your bank is fortified in terms of capital.”

Shareholders who spoke at the meeting commended the group for its performance.

President, Association for the Advancement of the Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, commended the group’s 2022 performance and dividend payout.

He expressed satisfaction with the approval of Otedola as a non-executive director, calling on the chairman to resolve the dispute between Otedola and Otudeko.

National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare also commended dividend payout while urging the group to improve returns to shareholders.

According to her, FBNH should also consider interim dividend payment in line with practices by some other major banks.

She also underscored the need to resolve dispute within the group amicably.

The board and management of FBNH had on Monday made brisk efforts to prevent the suspension of the AGM, after a group allegedly sponsored by Otudeko obtained an ex parte court order stopping the AGM