First Bank of Nigeria Holdings has made revisions to its agenda for the upcoming Annual General Meeting (AGM), which was initially scheduled for the following Tuesday. The modifications were prompted by a July notification to shareholders and the Nigerian Exchange Limited, which addressed resolutions concerning capital raising and preemptive rights for unsubscribed shares.
The updated notice, released by the financial institution on Wednesday, highlights changes to agenda sections 8b and 8d. The amended text emphasizes the plan for a capital raise of up to N150 billion, intended to be conducted through a Rights Issue. The specifics of this transaction, including terms, conditions, and dates, will be determined by the board of directors, subject to the necessary regulatory approvals.
Additionally, section 8d of the agenda outlines the possibility that shares not taken up by existing shareholders during the stipulated period of the Rights Issue might be made available for purchase to interested shareholders. This offer would be contingent upon terms and conditions set by the directors and approval from relevant regulatory authorities.
Despite these developments, a court order from the Federal High Court in Lagos had previously restrained First Bank of Nigeria Holdings from holding its 11th AGM. The court order stemmed from a petition by Olusegun Onagoruwa, leading to concerns over compliance with the court’s directives and the potential consequences for the bank.
Opinion: The revised AGM agenda indicates First Bank of Nigeria Holdings’ proactive approach to addressing capital needs, but the court order’s impact and regulatory concerns could introduce complexities and uncertainty to the situation. The bank’s actions and regulatory implications generate complexity amid proactive measures.