Home Banking After merger, Access Bank to hold EGM in 2019 to Increase its...

After merger, Access Bank to hold EGM in 2019 to Increase its authorized share

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Access Bank Plc announced that its Extraordinary General Meeting will hold at Balmoral Convention Centre, Federal Palace Hotel, 6-8 Ahmadu Bello Way, Victoria Island Lagos, on Friday, February 1, 2019 at 10.00 a.m., in order to accommodate the shares (2 shares of Access Bank Plc for every 7 shares of Diamond Bank Plc) to be issued to Diamond Bank Plc shareholders.
It also notified that the Register of members and Transfer Books will be closed on January 14, 2019, to enable the Registrar prepare the Register of Shareholders for the meeting.

Access Bank Plc Shareholders and the other holders of its securities are advised to send their questions to the following address: Company Secretariat Department, Access Bank Plc, Plot 999c Danmole Street, Victoria Island, Lagos or by email to groupcompanysecretariat@accessbankplc.com not later than January 20, 2019.
Details of the Special Resolution The Authorized Share Capital of the Bank (Access Bank) which is N20,000,000,000 (Twenty Billion Naira) made up of 38,000,000,000 (Thirty-Eight Billion) Ordinary Shares of 50 (Fifty) Kobo each and 2,000,000,000 (Two Billion) Preference shares of 50 (Fifty) Kobo each will be increased to N35,000,000,000 (Thirty-Five Billion Naira) divided into 68,000,000,000 (Sixty-Eight Billion) Ordinary shares of 50 (Fifty) Kobo each and 2,000,000,000 (Two Billion) Preference shares of 50 (Fifty) Kobo each.

Group Managing Director (GMD) of Access Bank, Herbert Wigwe at a press briefing yesterday had stated that the proposed rights issue, was to serve as an additional capital buffer, post-merger with Diamond Bank

The reason is to make sure that even though we have more than enough capital today, the emergent entity will have the strongest capital base to support an entity of that nature.

The two banks had earlier this week, announced a planned merger. This came barely few weeks after denials were issued.

Here are highlights of the proposed resolutions in the EGM notice.

That the Bank’s Authorised Share Capital be and is hereby increased from NGN20 billion to N35 billion by the creation of 30,000,000,000 (Thirty Billion) Ordinary shares of 50 (Fifty) Kobo each.
That the Directors be and are hereby authorized to raise additional equity capital of up to a maximum of NGN75,000,000,000.00 (Seventy-Five Billion Naira) by way of a Rights Issue, subject to obtaining the approvals of the relevant regulatory authorities.

That the shareholders, hereby waive their pre-emptive rights to any unsubscribed shares under the Rights Issue in the event of an under-subscription.
That the Directors of Access Bank be and are hereby authorized by way of a Placing and subject to obtaining all requisite regulatory approvals, to offer to Diamond Bank shareholders shares in Access Bank to be purchased after the Implementation Date on the same term as the Rights Issue and in the same proportion that they would be entitled to as if they had already become shareholders of Access Bank.

This is in the event of the rights issue taking place before the merger of the two banks, and subject to regulatory approval

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