7th March, 2015
The Securities and Exchange Commission (SEC) has approved the extension of Access Bank Plc rights issue by 10 working days.
This was contained in a statement issued by the Nigerian Stock Exchange (NSE) on Friday and obtained by NAN in Lagos.
The statement said that the bank’s rights issue of 7.63 billion shares of 50k each at N6.90 per share earlier slated to close on March 4 would now close on March 18.
It said that the extension was contained in SEC’s letter dated March 4, entitled: “Request for extension of offer period for another 10 working days.”
NAN reports that the reason for the extension was not stated but market sources said a substantial part of the right issues had yet to be taken by shareholders.
This may not be unconnected with the stock, which sells at a lower price of N6.45 per share as at March 5 at the secondary market.
But the rights issue price is N6.90 per share.
The bank’s shareholders on Oct. 13, 2014 approved the Board of Directors’ proposal to raise additional equity at an Extra Ordinary Meeting (EGM) held in Lagos.
According to the bank, the exercise is in line with its five-year corporate strategy plan to be one of the top three banks in the country and the “world’s most respected African bank.
It said that the corporate strategy plan would be anchored on four critical pillars namely capital, human capital, governance and risk management.
Mr Herbert Wigwe, the bank’s Group Managing Director said the proceeds from the offer would be used to upgrade its information technology platforms for better services, among others.
Access Bank also launched a highly successful 400 million dollars Eurobond in June, 2014.
The transaction followed the bank’s successful 350 million dollars five-year senior debt issued in 2012.