By PETER EGWUATU

Shareholders of Access Bank Plc, yesterday at the Court Ordered Extra –ordinary General Meeting (EGM) endorsed the proposal by its Board of Directors to unbundle the Bank’s shares in WAPIC Insurance Plc to them.

To this extent, WAPIC Insurance Plc will cease to be a subsidiary of Access Bank Plc. The shareholders also approved the three special sub- joined resolutions, which among other things include: That in accordance with the scheme, the 4,883,039,474 ordinary shares of 50 kobo each

of WAPIC Insurance Plc held by Access Bank Plc be transferred to the eligible shareholders of Access Bank pro rata in the proportion of their shareholding in Access Bank Plc, based on the application of the Allocation Ratio as specified in the Scheme document;  That pursuant to the provision of section 106 of the Companies and Allied Matters Act and in consideration for the transfer by Access Bank Plc to its shareholders of its entire shares in WAPIC Insurance Plc, the Bank’s share capital account shall be reduced by the sum of N6,613,213,318 by the reduction of its share premium account from  N165,187,794,503 to N158,573,581,185.

Meanwhile, Group Managing Director, Access Bank Plc, Mr. Aigboje Aig-Imoukhuede explained to shareholders the benefits of the scheme, saying, “ The unbundling will ensure that Bank’s  share holders have continued exposure to the insurance sector even after Access  Bank divest its interest.  Subsequent to the scheme becoming effective, WAPIC will be owned directly by eligible shareholders and the scheme shares will be held by eligible shareholders in approximately the same proportions as their shareholding in Access Bank.”

On the reason for divestment, he said, “ To comply with the Central Bank of Nigeria, CBN Regulation 3,  the Board of Access Bank made strategic decision to adopt a commercial banking license with international authorization . The Bank is thus required to cease engaging in activities that are not permissible under the license category which necessitates the divestment of   certain non-core subsidiaries, including WAPIC.”