Shareholders of VFD Group Plc, have approved the Company’s quest to raise additional N30 billion in capital to maintain a robust capital base to effectively navigate evolving market conditions.
VFD Group Plc, yesterday obtained shareholders approval to raise additional N30 billion fresh capital through an offer by way of issuance of shares, global depository receipts, commercial papers, among other market instruments.
The company at its virtual 8th Annual General Meeting (AGM)
stated that the specific form of the N30 billion additional capital raise will
be disclosed in due course, as significant infusion will undoubtedly strengthen
the financial position and support future initiatives, acquisitions, and growth
capital required for the Group’s investee companies’ expansion.
The company recorded growth In key financial metrics, with
gross earnings increasing by 33per cent to N45.1 billion in 2023 financial year
from N33.8 billion in 2022 financial year, and asset growth of 45.0per cent
from N151.5 billion in 2022 to N219.4 billion in 2023.
Based on this performance, the Board recommended a bonus
share of four new shares for every oneshare held, which was approved by the
shareholders during the AGM.
Addressing the shareholders at the AGM, the Chairman, VFD
Group, Mr. Olatunde Busari stated that over the past three years, the company
has strategically laid the groundwork for the kind of investment company it
aspires to be.
He noted that in 2023, VFD Group Plc took a major step by
restructuring the firm to enhance its focus as a proprietary investment
company, aligning the management structure and organisational model with key
strategic objectives.
Busari highlighted the company’s significant milestones
achieved during the past year, which have significantly shaped its history and
laid a strong foundation for accelerated performance in 2024. These
achievements remain strong indicators of VFD Group’s unwavering commitment to
the welfare of its shareholders.
While closing the meeting, the Chairman thanked the
management, staff, and service providers of the company for their consistent
service, support, and diligence in the detailed delivery of their jobs and
support of the company.
The Group Managing Director and Chief Executive Officer of
VFD Group Plc, Mr. Nonso Okpala, reiterated the monumental significance of the
next five years, beginning from 2024, contextualising a critical growth phase
in the Group’s evolution, aptly themed “A New Dawn.”
He noted the Importance of the Group’s transition from a
founder-led organisation to a publicly quoted, multiple shareholder-led entity,
and a strategic vision of the Group’s inclusive mindset of equally protecting
minority interests.
“To facilitate this transition, VFD Group has developed a
comprehensive framework that encompasses a new shareholder structure, a refined
investment philosophy, and a redefined corporate culture centred around its
evolving identity,” he said.
He stated further, “To our shareholders, our commitment is
unwavering. We will annually deliver a
composite return on equity of 30 per cent, a testament to our dedication to
your investment. This commitment is backed by our varied interest in diverse
but complimentary sectors and industries, establishing an ecosystem with the
potential to build a moat around our businesses.”
Okpala also thanked all the shareholders and other
stakeholders present and reassured them of the management’s continuous
commitment to strengthening stakeholder relations as well as business
performance for the year ahead.