BUSINESS DAY
The group of shareholders of outraged shareholders of First Bank, Nigeria’s oldest financial institution who are are seeking to stop the shocking bid by Femi Otedola, chairman of the holding company of the bank to launch a private placement is growing according to insiders at the bank.
Many of the shareholders who are now speaking out seemed to have been kept in the dark about the private placement until revelations in the media.
On Thursday, Norsworthy Investment Limited linked to Gabriel Ogbechie wrote to the company secretary of First Bank Adewale Arogundade expressing “grave concern” over media reports that the bank is launching a private placement at a time the bank’s highly successful rights issue has yet to be concluded and shareholders allotted their shares.
In the letter signed by Gabriel Ogbechie, Norsworthy which said it holds 337,347,804 shares said, “our understanding is that existing shareholders ought to be given ample opportunity to take up additional shares, and that a private placement will subsequently only be considered as a last resort.”
Norsworthy which says it must be given the opportunity to exercise its rights, is asking for supporting documentation, “particularly a report from the financial advisers to the capital raising exercise detailing the current status of the exercise (rights issue) and the reasons for their recommendation of a private placement.”
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