By PETER EGWUATU

Shareholders of Access Bank Plc, yesterday endorsed the proposal by its Board of Directors to raise N68 billion additional capital by way of rights issue.

The shareholders at the Extra-ordinary General Meeting (EGM) held in Lagos hailed the move by the bank to enhance its capital to meet current challenges.

Speaking at the EGM, the Chairman, Advancement for the Rights of Nigerian Shareholders, Dr. Farouk Umar said “The initiative to raise additional equity capital is laudable given the increasing demand for loan.

The CBN has initiated a lot of policies that will need banks to raise capital in order to remain in business.

The CBN is gradually removing COT, so it will be turf time for banks to make huge profit and that is why raising capital is necessary so that our bank can be able to loan money to the productive sector. The price for the rights issue must be considered in order to attract shareholders to pick their rights.”

The President, Nigerian Shareholders Solidarity Association, NSSA, Chief Timothy Adesiyan said “It is good to raise capital but the bank should make the price for the offer attractive. Also, we would like the bank to assure the shareholders that in the future we would get better dividend for taking our rights. The issue of underwriting is even immaterial since it is a rights issue.”

Other shareholders group leaders, such as Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria, ISAN, Mr. Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria, PSAN, Mrs. Bisi Bakare,   Chairman, Proactive Shareholders Association of Nigeria, and others commended the plans to raise additional capital.

According to them “ The rights issue should commence as quickly as possible taking consideration of the pricing and ensuring that all shareholders get the rights circular. We don’t want any body to be shortchanged. Once the price is right, shareholders will pick up their rights, but for some that may not have the financial capability to pick their rights they can trade the rights issue on the floor of the Nigerian Stock Exchange, NSE.

Consequently, all the shareholders approved all the eight special resolutions put before them at the meeting.

Some of the resolutions include: increase in authorize share capital from N13 billion made up of 24 billion ordinary shares of 50 kobo and two billion preference shares of 50 kobo each top N20 billion by the creation of 14 billion ordinary shares of 50 kobbo each.