Sterling Bank Plc has said it will hold an Extra-Ordinary General Meeting (EGM) on Tuesday, November 11, 2014 to seek shareholders’ approval to raise fresh capital for the bank.
The meeting will consider, and if thought fit, pass the following as Special Resolutions.
“That subject to regulatory approvals, the Directors be and are hereby authorised to issue up to 7,471,698,113 ordinary shares of 50 kobo each from the company’s share capital by way of Special/Private Placing to Messrs Silverlake Investments Limited or such other identified strategic investor at a price of N2.65 per share or such other price as the directors may determine in the interest of the company and subject to other terms and conditions and at such times as the directors may deem fit, and in respect thereof, the directors be and are hereby further authorised to appoint such advisers, professionals and parties that they deem necessary, upon such terms and conditions that the directors may deem appropriate”
“That without derogation from the above, additional capital up to US$200 million or its equivalent in naira be raised through any or a combination of the following: equity, global depository receipts, quasi equity, convertible loans, medium term notes, bonds and any other debt instrument(s), whether secured or unsecured, senior or subordinated by way of a public offering, rights issue, private placement either as a standalone transaction or by way of a programme, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, at such dates and time subject to such terms and conditions, including through a book building process or other process(es) all of which shall be as the Directors may deem fit and subject to the approval of the regulatory authorities.”
“That the directors be and are hereby authorised to take any action required to give effect to these resolutions, including but not limited to entering into agreements, undertakings, assignments, guarantees, arrangements or such other mechanisms with any party or parties in order to implement, finalise and give full effect to the aforesaid resolutions.”
Recall that the Managing Director of the bank, Yemi Adeola, had earlier disclosed that a private placement was in the pipe-line shortly after the conclusion of the bank’s rights issue exercise.
He said: “We are also in the process of concluding a private placement of US$120 million to further strengthen our capital position. These are part of our US$400 million capital raising plan comprising US$200 million each in tiers one and two capital respectively.”
It was also reported that the bank had earlier approached the capital market to raise N12.5 billion by way of rights issue, which recorded 103.3 per cent subscription with valid applications received summing up to N12.9 billion, indicating 3.3 per cent above the expected N12.5 billion.
He further stated that the US$200 million tier two capital will be raised through a multi-currency debt issue expected to come through this year.
“Our goal this year is to increase our capital position to an excess of N100 billion, with the funds deployed to support our growth plans,” he added.
Source : Tribune