Wema Bank Plc received shareholder approval to restructure its capital ahead of a rights issue in early 2022 at a court-ordered meeting.
The bank announced this in a Friday statement titled ‘Wema Bank obtains shareholders’ consent for a capital restructure, N40 billion rights issue.’
It stated that the approval was obtained at an extraordinary general meeting in which its shareholders voted unanimously in favor of the scheme of arrangement to reconstruct its shares.
According to the statement, the bank has over 38 billion units in issue, and the shareholders agreed to a reconstruction of one share for every three held.
Ademola Adebise, Managing Director/Chief Executive Officer, commented on the meeting, saying, “We are pleased with the support given and the confidence expressed by the participants.”
“We’ve come a long way in the last decade – from negative capital to over N60 billion in shareholder funds and a balance sheet worth more than N1 trillion.”
“With this shareholder approval, we will begin the rights issuance to increase our capital base to over N100 billion.” This allows us to expand our financial intermediation and grow our business.”
Adebisi also addressed recent issues, such as reports of a spat between Wema Bank’s management and one of its customers.
“The bank’s attention had been drawn to recent media mentions of certain customer obligations,” he said, “and reassures our shareholders and customers that the bank has and will continue to operate with the highest level of due process, corporate governance, and accountability.”