Wema Bank obtains shareholder consent for capital restructuring and naira 40 billion rights issue

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Wema Bank yesterday received approval from its shareholders at a court-ordered meeting to restructure its capital ahead of new capital raising through rights issuance early next year.

The Bank obtained approval at an extraordinary general meeting where its shareholders voted unanimously for the scheme of arrangement to reconstitute its shares. The Bank has issued more than 38 billion share units and shareholders have consented to a reconstitution of one share for every three held.

Commenting on the meeting, MD / CEO Ademola Adebise said: “We are delighted with the support given and the confidence expressed by our shareholders. We have come a long way in the past decade – from negative capital, we now have over 60 billion naira in shareholder funds and a balance sheet in excess of 1 trillion naira.

“With this shareholder approval, we will begin issuing rights to bring our capital base to over 100 billion naira. This gives us the opportunity to increase our financial intermediation and further develop our activities, ”Adebise said in a statement released by the bank.

Adebise also commented on some recent issues, including reports alleging a confrontation between the management of Wema Bank Plc and one of its clients.

The Managing Director / CEO said: “The attention of the Bank has been drawn to recent media mentions of certain client obligations and reassures our shareholders and clients that the Bank has and will continue to operate with the highest standard of corporate governance procedures, policies and procedures. “

ALAT, the Bank’s flagship digital banking solution, continues to deliver results and recently won the “Best Digital Bank of the Year 2021” award.
Wema Bank expects to end the year strong with better returns for shareholders.

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