KEY POINTS

• FBN Holdings reforms have the support of shareholders but they want it to be inclusive.
• The possible N350 billion private placement is shrouded in transparency concerns.
• FBN Holdings assures stakeholders of continuity of operation and governance.

Shareholders of FBN Holdings Plc have however expressed mixed reactions to N350 billion private placement.

For some, it’s a decisive step in the company’s way of growth; others consider its transparency and inclusiveness a subpoint.

But key shareholder groups have backed FBN Holdings Chairman, Femi Otedola’s reforms, refuting calls for the group to convene an extraordinary general meeting.

Akinolade, former president of Noble Shareholders Solidarity Association, said Otedola’s leadership is supported by his following, adding that other interests fuelled the protests against the private placement.

Under Otedola’s watch, he has praised FBN Holdings for improving performance, better dividend payouts. Although Akinlade called for more inclusive capital raising approach, with public offers or rights issues mentioned as its equitable alternative.

Private places in demand calls for transparency

Other national coordinators of different shareholder associations commented that transparency and adherence to regulatory guidelines were essential.

In defence of private placement, Bisi Bakare of the Pragmatic Shareholders Association of Nigeria said the focus should be on legality and legitimacy.

Like Boniface Okezie of the Progressive Shareholders Association of Nigeria, who warned against potential abuses of demolition of corporate governance. A call was made by him that the Central Bank of Nigeria (CBN) should ensure the process matches past resolutions from the last Annual General Meeting (AGM) to protect stakeholders confidence.

If this is going to be a select few private placement, it creates corporate governance concerns. Okezie stated the CBN must verify the process in order to maintain transparency.

FBN Holdings worried stakeholders

FBN Holdings also responded to the controversy, and its company secretary, Adewale Arogundade, through a statement, said that the operations of the company were not affected. It stated that as a company it was committed to corporate governance, transparency and accountability.

Separately, FBN Holdings also mentioned its on-going rights issue of 5.983 billion shares to existing shareholders at N25 per share to raise N150 billion.

Investors were assured that the company was making efforts to satisfy regulatory capital requirements before the time when its decline in capital would be at risk of being discontinued.

Debates rage on, but in the end Otedola’s reforms have won broad shareholder backing, giving credence to the chairman’s ambitions to shepherd FBN Holdings to sustainable growth.