Wema Bank has notified the shareholders that by an order of the Federal High Court has directed a meeting of the shareholders be convened for the purpose of considering and approving a Scheme of Arrangement for a Share Capital Reconstruction and Alteration of shareholder rights involving the bank and holders of its fully paid ordinary shares.
The following resolutions are proposed:
- The right sizing of the Bank’s paid up share capital of N19,287,233,041 comprising of 38,574,466,082 ordinary shares of a nominal value of N0.50 each to bring it down to N6,429,077,680 (67% of the current figure).
- N 6,429,077,680 comprising of 12,858,155,360 ordinary shares of the nominal value of N0.50 each will be retained as the Bank’s paid up share capital.
- Each of the shareholders will be and hereby relinquish the pro- rata portion of the 25,716,310,721 issued ordinary shares of N0.50 each of the bank together with all the rights, title and interests attaching thereto (Relinquished shares) in accordance with Relinquishment ratio and terms of the scheme.
- N12,858,155,360 being the value of the relinquished shares shall be credited to the bank’s premium account.
- The bank shall Re-issue the relinquished shares
- As part of the scheme, each of the shareholders shall retain 1 (one) ordinary shares of N0.50 each for every 3 (three) ordinary shares of N0.50 each previously held in the share capital of the bank resulting in a total of 12,858,155,360 ordinary shares of N0.50 each of the share capital of the bank.
Following the completion of the Bank’s Share Reconstruction exercise, the Board of Wema Bank has authorized to raise capital of up to N40 billion by a way of rights issue to the existing shareholders of the bank by issuing two new shares for every three shares held in the reconstructed capital of the bank, subject to regulatory approval.