Shareholders of Wema Bank Plc (NGX: WEMA) has authorized the Board of Directors of their bank to raise capital up to N40,000,000,000 amongst other things at a recently concluded Extra-Ordinary General Meeting (EGM) of the Bank.
The aforementioned EGM held on 31st December 2021 by 12 noon at Wema Towers, 54 Marina, Lagos State, Nigeria.
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The following resolutions were proposed and duly passed by the requisite majority at the meeting;
- That following the completion of the Bank’s share reconstruction exercise, the Board of Directors be and is hereby authorised to raise capital of up to NGN40,000,000,000 by way of a rights issue to the existing shareholders of the Bank by issuing two new shares for every three shares held in the reconstructed capital of the Bank (“Rights Issue”), subject to obtaining relevant regulatory approvals;
- That the Directors be and are hereby authorised to undertake the Rights Issue on such dates and on such terms (including underwriting) as may be determined by the Directors;
- That the shareholders hereby waive their pre-emptive rights to any unsubscribed shares offered pursuant to the Rights Issue in the event of an under-subscription and hereby authorize the Directors to offer/issue such unsubscribed shares at a price not less than that specified in the Rights Issue Circular, in such manner as they think most beneficial to the Bank;
- That the Directors be and are hereby authorised to approve, sign and/or execute all documents, appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authorities;
- That following allotment by the Board of Directors of the shares, the shares issued by the Bank pursuant to the Rights Issue or any unsubscribed shares disposed of by the Directors in accordance with Resolution 3 above be listed on the floor of the Nigerian Exchange Limited;
- That all acts carried out by the Directors and/or management of the Bank in connection with the above are hereby approved and ratified;
- That the Board of Directors and the Registrars of the Bank be and are hereby authorised to take steps to reflect the adjustments to each shareholder’s’ shareholding and amend the Bank’s register of members and take all actions that are necessary to put the Rights Issue and the foregoing resolutions into effect; and
- That the Directors be authorized to perform other acts, take other steps or do all such other things as may be necessary for or incidental to, or as they deem appropriate to giving effect to the spirit and intendments of the above resolutions
About the Company
Wema Bank Plc (the “Bank”) is a Company domiciled in Nigeria. The address of the Bank’s registered office is 54 Marina, Lagos, Nigeria. The Bank is primarily involved in investment, corporate, commercial and retail banking. The bank has a wholly owned subsidiary which is WEMA Bank Funding SPV Plc.
It has 38.57 billion outstanding shares and a market capitalization of N30.47 billion.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur