Recapitalisation: Access Holdings N351 billion rights issue to open July 8

Key Points

• Fundraising Initiative: Access Holdings Plc aims to raise N351 billion through a rights issue to recapitalise and support its growth strategy.
• Shareholder Approval: The capital raising programme, including the rights issue, was unanimously approved by shareholders at the 2nd Annual General Meeting.
• Share Details: 17.77 billion ordinary shares of N0.50 each will be offered at N19.75 per share, on a one-for-two basis, as of June 7, 2024.
• Key Parties Involved: Chapel Hill Denham leads the issuance, with Atlas Registrars as registrars and multiple joint issuing houses participating.
• Regulatory and Participation: Pending SEC approval, the rights issue will be open from July 8 to August 8, 2024, with detailed participation forms sent to shareholders.

 

Access Holdings Plc is planning to raise N351,009,103,017.25 through a rights issue as part of its efforts to recapitalise.

The lender held a formal signing ceremony on Tuesday as part of the arrangements to raise a rights issue for existing shareholders. The offer is part of the Group’s strategy to enhance its working capital requirements, which include funding for organic growth in its banking and non-banking subsidiaries.

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What a Rights Issue Means

A rights issue is when a company offers its existing shareholders the chance to buy additional shares at a reduced price.

Reason for Raising a Rights Issue

Access Holdings’ shareholders, at its 2nd Annual General Meeting held on Friday, April 19, 2024, unanimously backed its plan to execute a capital raising programme of about US$1.5 billion, including the subset initiative to raise capital through a rights issue of ordinary shares to its shareholders.

Under the rights issue, 17,772,612,811 ordinary shares of N0.50 each will be offered at N19.75 per share on the basis of one new ordinary share for every two existing ordinary shares held as of Friday, June 7, 2024.

What is Access Saying?

At the signing ceremony, Acting Managing Director/Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, disclosed, “The rights issue is a significant step in delivering our 2023-2027 strategic plan. The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders.”

Parties to the Deal

Chapel Hill Denham is the lead issuing house for the offer, while Atlas Registrars Limited will serve as registrars through the exercise.

Also read: Access Holdings Plc Record N1.4 Trillion Revenue in 2022

The joint issuing houses are Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa, and Meristem Capital.

Other parties to the offer 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.

Awaiting Regulatory Approval

Subject to the approval of the Securities and Exchange Commission (SEC), the acceptance and application lists for the rights issue are expected to open on Monday, July 8, 2024, and close on Thursday, August 8, 2024.

How to Partake in the Rights Issue

The rights circular for the issue, which contains a provisional allotment letter and the participation form, will be mailed directly to shareholders of the Group. Printed copies of the participation form can also be obtained at any Access Bank branch and the offices of the issuing houses during the offer application period.

All existing shareholders and prospective investors are encouraged to read the rights circular and prospectus and, where in doubt, consult their stockbroker, fund/portfolio manager, accountant, banker, solicitor, or any other professional adviser for guidance before subscribing.

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