FBN Holdings’ Shareholders Approve N150bn Rights Issue, N0.50 Dividend
Kayode Tokede
The shareholders of FBN Holdings (FBNH), yesterday approved the management decision to raise N150 billion via a rights issue and also approved the N0.50 dividend payout for 2022 financial year.
At the just concluded virtual 11th Annual General Meeting (AGM), the shareholders also approved the 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.
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 N0.50 kobo and all other ordinary businesses.
During the AGM, the shareholders also appointed billionaire investor, Mr. Femi Otedola as a non-executive director of FBN Holdings.
Speaking virtually, the President Pragmatic Shareholders Association, Mrs Bisi Bakare commended the management’s N0.50 dividend payout, requesting for further increase.
She pleaded to the management to resolve the dispute between Mr. Femi Otedola and for the interest of the financial institution and shareholders at large.
Bakare, called on the management of FBN Holdings to look into the interim dividend payout to shareholders, stressing that interim dividend stands a chance to boost the image of the financial institution.
The President, Association for the advancement of the rights of Nigeria Shareholders, Mr. Umar Farouk commended the group’s 2022 performance and dividend payout.
He said that the N0.50 dividend is commended, questioning if shareholders should be expecting higher dividend come the 2023 financial year?
He expressed satisfaction with Mr. Femi Otedola as a non-executive director, calling on the Chairman to resolve the dispute between two majority shareholders of the Holdings.
Farouk rebuked the protest of shareholders at FBN Holdings head office, demanding the management to investigate and prosecute involved shareholders.
Responding to shareholders, the Group Managing Director, FBN Holdings, Mr Nnamdi Okonkwo said the Holdings over the years has maintained increased dividend payout to shareholders, stating that the half year performance of 2023 is an indication of increased dividend payout this year.
On capital, 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.”
Two major issues- Otedola directorship and new capital raising were at the heart of long-running intrigues around the 11th AGM, which pitched pro-Otedola shareholders against renowned businessman and former chairman of the bank, Mr Oba Otudeko.
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.
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
The board of FBN Holdings, however, succeeded in clearing all hurdles and filed a confirmatory notice at the Nigerian Exchange (NGX) that it had sufficient grounds to proceed with the general meeting as scheduled yesterday.
In a regulatory filing at the Nigerian Exchange (NGX), the board of FBNH confirmed that it had succeeded in filing a notice of appeal and motion on notice for stay or suspension of execution and suspension of further hearing of the Federal High Court (FHC)’s order stopping the AGM, pending the determination of the appeal filed at the Court of Appeal.
At the AGM, all eyes were on two major items on the agenda- the approval of Otedola as a non-executive director of the group and the proposal to undertake a N150 billion rights issue.
