The Board and Management of VFD Group Plc wishes to inform the general and investing public of the strategic decisions made during our recent board meeting held on Thursday, May 30, 2024.
These decisions reflect our ongoing commitment to sustainable growth, prudent financial management, and maximizing shareholder value.
The Group Managing Director and CEO, Nonso Okpala, recently emphasized the Company’s dedication to maintaining a robust capital base to effectively navigate evolving market conditions.
To support this commitment, the Group plans to raise an additional ₦30 billion, pending approval from our shareholders at the upcoming Annual General Meeting (AGM). While the specific form of this capital raise, whether through debt or equity, will be disclosed in due course, this significant infusion will undoubtedly strengthen our financial position and support our future initiatives, acquisitions, and the growth capital required for our investee companies’ expansion. The Board has also approved the strategic sale of up to 75% of our stake in Abbey Mortgage Bank Plc, representing up to 30% of the bank’s outstanding shares.
This decision aligns with our ongoing strategy to optimize our portfolio in response to market conditions. By taking this step, we aim to unlock significant value for our shareholders and strengthen our investment strategy. After careful analysis of market dynamics, we believe this move will enhance our ability to capitalize on future opportunities.
Additionally, the Board discussed the establishment of a Capital Market Holding Group, anchored by Anchoria Capital Group Limited. This strategic consolidation will encompass our interests in Anchoria Asset Management Limited, Anchoria Investment & Securities Limited, and Kairos Capital Limited. The synergies within this group are expected to enhance operational efficiency, improve service delivery, and position us for sustained growth in the capital market space.
In line with our commitment to rewarding our existing shareholders, the Board has approved a scrip (bonus) issuance of four (4) new shares for every one (1) share held as of June 14, 2024. This move underscores our confidence in the company’s prospects and aligns with our unwavering commitment to shareholder value creation, as stated by our Group Chairman, Olatunde Busari.
We wish to affirm that our decisions are guided by a long-term vision to create enduring value for our stakeholders. We remain steadfast in our commitment to transparency, accountability, and excellence in all our endeavors.