Fidelity Bank has sold a 10.4 per cent controlling stake in the financial institution to two unnamed investors after conducting a private placement.
According to a statement released on Friday, 15 April 2023, the share acquisition was made in late February after Fidelity Bank put up 3.03 million shares for sale.
Two applications were received for the shares worth N13.97 billion. The private placement was 100 per cent subscribed and has been approved by the Securities and Exchange Commission (SEC).
In the statement, Fidelity Bank said it: “Announces the result of the Private Placement of 3,037,414,308 ordinary shares of 50 kobo each at ₦4.60 per share, which opened on Wednesday, February 22, 2023 and closed on Thursday, February 23, 2023.
“Two (2) applications were received for a total of 3,037,414,308 ordinary shares in connection with the Private Placement.
“The two (2) applications for a total of 3,037,414,308 ordinary shares were found to be valid, accepted and processed accordingly.
The Private Placement was therefore 100% subscribed. All applications were received within the Offer period of Wednesday, February 22, 2023 and Thursday, February 23, 2023.
“The Securities & Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) has cleared the Basis of Allotment stated above as well as this announcement. CSCS accounts of successful allotees will be credited with shares allotted, not later than Friday, May 05, 2023 by the Registrars to Fidelity Bank Plc, First Registrars & Investor Services Limited.”
The share sale hands Fidelity Bank N13.97 billion as funding for its operation at a time the company splashed millions to acquire the Union Bank of Nigeria subsidiary in the United Kingdom.
BrandSpur Nigeria recalls that Fidelity Bank’s Managing Director and Chief Executive Officer, Nneka Onyeali-lkpe, said the acquisition of Union Bank UK is part of their growth plan.
“This transaction aligns with our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients,” Onyeali-lkpe said.