SHAREHOLDERS  ENDORSE FIRSTBANK'S N100B HYBRID OFFER

Shareholders of Nigeria’s premier and largest financial services supermarket, First Bank of Nigeria Plc, Monday unanimously endorsed the Bank’s proposed N100 billion Rights Issue and Public Offer of ordinary shares. 

At the Bank’s Extraordinary General Meeting (EGM) held at the Eko Hotel and Suites, Victoria Island, Lagos, the shareholders who came in their numbers, overwhelmingly voted in favour of the hybrid offer. 

Among other ordinary resolutions, the shareholders passed “That the Directors of the Company be and are hereby authorized and at a price to be approved by the Board of Directors offer to existing shareholders, the general public and any other preferential investors, N100 billion or any fraction thereof by way of Rights Issue and Public Offer of Ordinary Shares in such proportion and timing as the Directors deem fit subject however to the approval of the regulatory authorities.”  

Shareholders who spoke at the EGM commended the Board of the Bank for coming up with the offer and made suggestions on how the Bank would maintain its leadership position in the banking industry. 

Chief Sunny Nwosu, National President of Independent Shareholders Association of Nigeria, commended the maturity of the Board, which had always listened and acted on the suggestions of shareholders. 

He urged the Board to work out a fair pricing, taking into consideration shareholders who have stayed with the Bank over the years, adding that the timing of the offer should also be given serious thought. 

On the merger between FirstBank and Ecobank Transnational Incorporated (ETI), Nwosu said that without prejudice to raising fresh funds from the Market, the Board should go back to the drawing board to revive the merger, saying the merger gives immediate synergy. 

In his own remarks, the President of Shareholders Solidarity Association of Nigeria, Asiwaju Akintunde Asalu, described the hybrid offer as a “jumbo offer” and commended the Board, Management and staff of FirstBank for coming up with the offer. He expressed confidence in the ability of the Board, which he described as consistent and capable of withstanding the vagaries of the market. 

Asalu expressed hope that the N100 billion offer would be oversubscribed and pledged the full support of all shareholders, saying they will assist in every way possible to make the offer a success. 

Similarly, Dr Umar Farouk, a notable shareholder, expressed hope that the offer will be oversubscribed and appealed to the Board not to shortchange shareholders because of the offer. On the contrary, he appealed to the Board to give a bonus of 1 for 5 to the shareholders for the year ended March 31, 2007. 

Another shareholder, Mr. Nona Awo, commended the offer but urged the Board to prepare the minds of the shareholders on what the Bank wants to do with the funds to be raised as well as what the Bank expects from the shareholders as regards the rights issue.  

While calling on the Board to ensure favourable pricing for the hybrid offer, he suggested that the dividend for the year ended March 31, 2007 should be paid before the close of the offer to enable shareholder utilize it to buy more shares. 

In his own remarks, His Royal Majesty, Eze M. O. Kanu, the Chairman of Agura Hotels, Abuja said he supported all the resolutions and urged the Board to fix the price between N35-37 in the overall interest of the Bank. 

In his response, the Managing Director/Chief Executive, Mr. Jacobs Moyo Ajekigbe, thanked the shareholders for the large turnout. He said the purpose of the offer is driven by the Bank’s vision to be the clear leader and its strategy of growth and modernization. 

Ajekigbe emphasized that the additional funds will be deployed in the areas of network expansion and modernization of branches, Information Technology, business growth and expansion as well as to capitalize the subsidiaries. 

He said that part of the growth being envisioned is the ETI/FirstBank merger, which he said is ongoing, adding that it is the duty of the Board to get the best for FirstBank.

On pricing, Ajekigbe stated that the Board had set up a committee to set an appropriate price. He said the Board will ensure that it comes up with a reasonable pricing. 

The Managing Director believes that the timing is right. According to him, the nation’s elections and the offer will run simultaneously, adding that Nigeria’s high rating by Fitch Ratings Inc., an international rating agency, was a vote of confidence on the country’s economy, which makes the timing of the offer most appropriate. 

Ajekigbe promised that the Board and Management of FirstBank will continue to ensure that shareholders get decent returns on their investment. 

The Chairman of the Board of FirstBank, Alhaji Umaru Mutallab, thanked the shareholders for the overwhelming support and looked forward to the offer being oversubscribed.

 Notable shareholders that attended the EGM include: Dr Lateef Adegbite, the Secretary General of the Supreme Council for Islamic Affairs, Senator O. Durojaiye, Professor Abiola Ojo, Alhaji Razak Oladejo, former director of the Nigerian Stock Exchange, Mallam Umar Yahaya among others.