Access Holdings undertakes N351bn rights issue to strengthen financial position
Business a.m.
L-R: Bolaji Agbede, acting group managing director, Access Holdings Plc; Aigboje Aig-Imoukhuede, chairman, Access Holdings Plc, and Roosevelt Ogbonna, managing director/chief executive officer, Access Bank Plc, at the signing ceremony for Access Holdings’ Rights Issue of 17,772,612,881 ordinary shares of N0.50 each at N19.75 per share, held at Access Tower in Victoria Island, Lagos
Access Holdings has recently embarked on an initiative to raise N351,009,103,017.25 (three hundred and fifty-one billion, nine million, one hundred and three thousand, seventeen naira and twenty kobo) through a rights issue aimed exclusively at existing shareholders.
The rights issue, a significant financial arrangement in the Nigerian market, will provide Access Holdings with the resources necessary to strengthen its liquidity, expand its operations, and support the growth of its banking and non-banking subsidiaries.
The signing ceremony with respect to the offer was held recently at Access Tower, the corporate office of Access Holdings in Lagos.
The rights issue entails the offer of 17,772,612,811 (seventeen billion, seven hundred and seventy-two million, six hundred and twelve thousand, eight hundred and eleven) ordinary shares of N0.50 each at N19.75 per share on a 2-for-1 basis, with existing shareholders eligible to subscribe to one new share for every two shares they currently hold, as of Friday, June 7, 2024.
Speaking at the signing ceremony, Bolaji Agbede,acting managing director/chief executive officer of Access Holdings Plc, disclosed that the rights issue is a significant step in delivering the company’s 2023-2027 strategic plan.
“The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders,” Agbede said.
Addressing the shareholders and key stakeholders during the signing ceremony,Aigboje Aig-Imoukhuede,the chairman of Access Holdings, noted that this was the second rights issue by Access Corporation, having held its first rights issue in 2002.
“Today, we are here for another significant corporate action in the life of the Access ecosystem. We want to write another chapter in the history of Access Holdings.
It is significant for me for many reasons. This is the first time that we are bringing to the market Access Bank financial instrument that Herbert is not there. It seems very strange. But we know he is part of this offer. He is sitting here with us in spirit. And the spirit is very present in our hearts,” he stated.
Aig-Imoukhuede spoke further on the key objectives of the rights issue, noting the pivotal role it will play in fueling the group’s ambitious expansion plans across Africa and beyond.
According to Aig-Imoukhuede, the funds raised will be allocated strategically to support Access Holdco’s ongoing rollout of initiatives, including those in the banking, non-banking, pension, and fintech sectors, leveraging the group’s extensive expertise to unlock significant opportunities for growth.
On his part, Roosevelt Ogbonna, the managing director of Access Bank, explained that the rights issue, public offers and corporate actions give the bank the opportunity to test its collective resolve.
“Every time we have been put to that test, we have passed in flying colours.
“ The truth is that it is an opportunity for us to bind together as a board and more importantly, as a stakeholder group,” he stated.
To facilitate the successful execution of the rights issue, Access Holdings has engaged several strategic partners. Chapel Hill Denham has been appointed as the Lead Issuing House, while Atlas Registrars Limited will serve as the Registrars for the exercise.
Furthermore, the company has selected a team of nine experienced joint issuing houses to support the offer, which includes Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa, and Meristem Capital.
The other parties involved include Coronation Merchant Bank, Coronation Securities, Chapel Hill Denham Securities Limited, FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Ltd, Network Capital Ltd, CSL Stockbrokers Limited, Compass Investment & Securities Ltd, PAC Securities Limited, Dynamic Portfolio, Chartwell Securities Limited, Tiddo Securities Limited, and Futureview Securities Limited.
Upon approval from the Securities and Exchange Commission (SEC), Access Holdings anticipates that the Acceptance and Application Lists for the rights issue will open on Monday, July 8, 2024, and remain open for a one-month period, closing on Thursday, August 8, 2024, providing shareholders with ample time to consider their investment decision.
In line with the procedural requirements of a rights issue, Access Holdings will distribute a rights circular directly to its shareholders via mail. The rights circular contains critical information about the offer, including the provisional allotment letter, which outlines the number of shares to which each shareholder is entitled, and the participation form, which shareholders must complete to apply for their allotted shares.
Alternatively, shareholders may obtain printed copies of the participation form from any Access Bank branch or the offices of the participating Issuing houses during the offer application period.
To this end, Access Holdings urges all existing shareholders and prospective investors to thoroughly review the rights circular and prospectus, which provide comprehensive details about the Offer, including the associated risks and opportunities.
In case of any doubts or concerns, shareholders and potential investors are encouraged to consult with their financial and legal advisors, including their stockbroker, fund/portfolio manager, accountant, banker, solicitor, or any other qualified professional, to obtain personalised advice and guidance before subscribing to the rights issue.