Wema Bank, a leading financial services provider partly owned by Nigerian gambling magnate Kessington Adebutu, is seeking approval to raise N200 billion ($145 million) in fresh capital. The bank will hold its annual general meeting (AGM) electronically on May 28, 2024, where shareholders will vote on the proposal.
The capital increase aims to strengthen Wema Bank’s regulatory compliance and fuel its business expansion plans, according to an AGM notice. The notice details a multi-pronged approach to achieving the capital raise, subject to shareholder approval. This includes public offerings, rights issues, and private placements.
Boosting capital, expanding footprint
As part of its growth strategy, Wema Bank also seeks to increase its issued share capital from N6.43 billion ($4.7 million) to N25 billion ($18.3 million). This will be achieved through the issuance of an additional 37.14 billion ordinary shares, each with a par value of 50 kobo. The new shares will be on par with existing shares.
The AGM will present shareholders with special resolutions for consideration. These resolutions empower the board of directors to allocate and issue various securities, including ordinary shares, preference shares, notes, and bonds, to execute the capital raise. Additionally, the resolutions authorize the board to implement strategic measures to comply with the Central Bank of Nigeria’s recapitalization directives.
Innovation amidst challenges
As one of Nigeria’s keading , Wema Bank remains a prominent player in Nigeria’s financial landscape. Renowned for its innovative spirit, the bank launched ALAT, Africa’s first fully digital bank. With decades of experience and a commitment to progress, Wema Bank retains its position as a cornerstone of Nigeria’s financial ecosystem.
Nigerian gambling magnate Kessington Adebutu, founder of Premier Lotto Limited, the country’s oldest gaming company, owns a significant stake (28.09 percent) in Wema Bank through Neemtree Limited, a special purpose vehicle (SPV) established in 2013 for targeted acquisitions. His daughter, Abolanle Matel-Okoh, also holds a 4.54 percent stake in the bank.
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