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Transfer of 35.5 billion shares to take place
The stage is now all set for Access Bank plc to change its governing business structure to a non-operating holding company following a court-ordered meeting in Lagos on Thursday where the bank’s shareholders gave their approval for the board to go ahead and effect the change.
Shareholders, attending the meeting in person and by proxy, noted that the company is poised to bring expansion and growth in shareholders’ return as the financial institution prepares to become Access HoldCo.
At the meeting, based on a court order, the bank shareholders gave approval to the company to transfer 35,545,225,622 ordinary shares of 50 kobo each in the issued and paid-up share capital of the bank held by them to Access HoldCo Plc. With this transfer, each shareholder of the bank will receive one ordinary share of 50 kobo each in the HoldCo and will be credited as fully paid, in exchange for one ordinary share of 50 kobo each held in the bank as at the terminal date.
Ajoritsedara Awosika, chairman, Access Bank, while speaking at the meeting said the planned HoldCo structure is in line with the banking activities regulation and scope of the Central Bank of Nigeria (regulation 3) that revoked the universal banking guidelines and limited the ability of banks to undertake non-banking business.
She explained that, “Due to its oversight function, the Holdco structure will facilitate the business growth of the banking group and expansion of service into underpenetrated regions in Nigeria, Africa and beyond,” adding that the restructure will result in shareholders holding shares in the holdco in the same proportion as their current holdings in the bank and the bank’s shares being held wholly the holdco, which will be a regulated entity for CBN purposes.
Awosika further explained that the bank board considers the structure to be the most appropriate approach to create greater strategic flexibility and diversification of the group’s revenues.
Faruk Umar, national president, Association for Advancement Rights of Nigerian Shareholders, while expressing his excitement on the bank’s aim to diversify into a permissible business that is expected to bolster its profitability, said, “I believe after converting into Holdco, the share price of Access will increase. We (shareholders) commend the foresight of the board for the acquisition so far and it has proven to be profitable to the bank. We are happy with the quality of the directors and board. We believe with the Holdco structure, we are going to move forward.”
Also speaking at the event, Herbert Wigwe, group managing director and chief executive officer, said the bank’s operations in different countries required a different organisational structure to handle a lot of things, explaining that Access Bank needed to continuously evolve and create constraints that would ensure proper oversight over the subsidiaries.
“The institution is evolving into a larger and a different type of institution that tries to optimize and provide greater value to shareholders as it goes on to the next level. Even at Holdco level, despite the increased regulatory pressure from CBN, we do have a Holding company body that can basically interface with several of these regulators to make sure that our institution as it is going is well protected,” he said.
