FBN Holdings Plc cancels proposed extraordinary meeting on N300bn capital raise

FBN Holdings Plc has announced the cancellation of its earlier advertized Extraordinary General Meeting meant to seek shareholders’ approval to raise N300 billion in fresh capital.

No reason was given for the cancellation, according to a corporate filing with the Nigerian Exchange Limited (NGX) on Friday, signed by Adewale Arogundade, the acting Company Secretary.

It read: “Notice is hereby given that The Extraordinary General Meeting (EGM) of the members of FBN Holdings Plc (the “Company”), earlier scheduled to be held virtually on Tuesday, April 30, 2024, at 10 a.m for the consideration and authorization of the Company to undertake a Capital raise of up to N300bn and other ancillary matters is hereby cancelled.”

It said further information will be provided in due course, as appropriate.

The Punch reports that last week, FBN Holdings in a notice of its Extraordinary General Meeting filed with the NGX disclosed that it would be seeking shareholders’ approval to raise N300bn additional capital.

According to the notice, shareholders will consider and vote on the special business “that the company be and is hereby authorised to undertake a capital raise of up to N300,000,000,000.00.”

The financial institution proposed to raise the funds via a public offering, private placement, or rights issue in the Nigerian or international capital markets.

The capital raise came barely weeks after the Central Bank of Nigeria directed Banks to recapitalize.