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VFD GroupObtains Shareholders’ Approval to Raise N30bn Additional Capital
Kayode Tokede
VFD Group Plc, yesterday obtained shareholders approval to raise additional N30 billion fresh capital through an offer by way of issuance of shares, global depository receipts, commercial papers, among other market instruments.
The company at its virtual 8th Annual General Meeting (AGM) stated that the specific form of the N30 billion additional capital raise will be disclosed in due course, as significant infusion will undoubtedly strengthen the financial position and support future initiatives, acquisitions, and growth capital required for the Group’s investee companies’ expansion.
The company recorded growth in key financial metrics, with gross earnings increasing by 33per cent to N45.1 billion in 2023 financial year from N33.8 billion in 2022 financial year, and asset growth of 45.0per cent from N151.5 billion in 2022 to N219.4 billion in 2023.
Based on this performance, the Board recommended a bonus share of four new shares for every oneshare held, which was approved by the shareholders during the AGM.
Addressing the shareholders at the AGM, the Chairman, VFD Group, Mr. Olatunde Busari stated that over the past three years, the company has strategically laid the groundwork for the kind of investment company it aspires to be.
He noted that in 2023, VFD Group Plc took a major step by restructuring the firm to enhance its focus as a proprietary investment company, aligning the management structure and organisational model with key strategic objectives.
Busari highlighted the company’s significant milestones achieved during the past year, which have significantly shaped its history and laid a strong foundation for accelerated performance in 2024. These achievements remain strong indicators of VFD Group’s unwavering commitment to the welfare of its shareholders.
While closing the meeting, the Chairman thanked the management, staff, and service providers of the company for their consistent service, support, and diligence in the detailed delivery of their jobs and support of the company.
The Group Managing Director and Chief Executive Officer of VFD Group Plc, Mr. Nonso Okpala, reiterated the monumental significance of the next five years, beginning from 2024, contextualising a critical growth phase in the Group’s evolution, aptly themed “A New Dawn.”
He noted the importance of the Group’s transition from a founder-led organisation to a publicly quoted, multiple shareholder-led entity, and a strategic vision of the Group’s inclusive mindset of equally protecting minority interests.
“To facilitate this transition, VFD Group has developed a comprehensive framework that encompasses a new shareholder structure, a refined investment philosophy, and a redefined corporate culture centred around its evolving identity,” he said.
He stated further, “To our shareholders, our commitment is unwavering. We will annually deliver a composite return on equity of 30 per cent, a testament to our dedication to your investment. This commitment is backed by our varied interest in diverse but complimentary sectors and industries, establishing an ecosystem with the potential to build a moat around our businesses.”
Okpala also thanked all the shareholders and other stakeholders present and reassured them of the management’s continuous commitment to strengthening stakeholder relations as well as business performance for the year ahead.
