The discussion among certain investors of FBN Holdings Plc about the proposed N350bn private placement has sparked debates on corporate governance and transparency. Some shareholders support the reforms led by FBN Holdings’ Chairman, Femi Otedola, and oppose the need for an extraordinary general meeting.
Matthew Akinlade, a former president of the Noble Shareholders Solidarity Association, believes that some shareholders’ objections are influenced by external forces. He commended Otedola’s efforts in improving the bank’s performance and dividends but raised concerns about the exclusive nature of private placement, advocating for a more inclusive approach like a public offer or rights issue.
Bisi Bakare, the National Coordinator of the Pragmatic Shareholders Association of Nigeria, defended the private placement if it adheres to legal requirements set by regulatory bodies like the Securities and Exchange Commission and the Central Bank of Nigeria.
Boniface Okezie, the National Coordinator of the Progressive Shareholders Association of Nigeria, echoed similar sentiments but emphasized the importance of transparency and adherence to corporate governance to prevent favoritism and ensure regulatory compliance.
FBN Holdings assured stakeholders via a statement that ongoing developments would not disrupt its operations and that all subsidiaries are delivering uninterrupted services. The company reaffirmed its commitment to corporate governance, transparency, and meeting regulatory capital requirements.
FBN Holdings Plc has announced a rights issue to existing shareholders to raise N150 billion by offering 5.983 billion ordinary shares at N25 per share.