Zenith Bank Suspends Plan to Raise N100 Bn

Shareholders of Zenith Bank Plc on Wednesday approved the board of
directors’ request to step down their plan to raise fresh capital for the
bank businesses.

Speaking at the bank 26th Annual General Meeting (AGM) in
Lagos, chairman of the bank Jim Ovia said the bank decided to suspend the idea because they believe the time is not right for the bank.

Prior to the suspension, the board of directors had scheduled it as one of
the special business of the meeting, requesting shareholders’ approval to
raise additional capital of up to N100 billion or its equivalent whether
locally or internationally or a combination of both by way of a public
offering, right issues or any other methods they deem fit.

The bank had intended to raise the money through any of the following
processes, issuance of shares, convertible securities or non-convertible
securities, global depository receipts, medium term notes, loans notes,
bonds and any other instruments, whether as a standalone transaction or by way of a programme, unlisted or listed locally or internationally in such tranches, series or proportions, at such coupon or interest rates, within such maturity period, at such dates and time and on such terms and conditions, including through a book building process or other processes.

However, for the 2016 financial year shareholders approved a final dividend of N1.77 kobo for every share of 50 kobo that was recommended by the board of director. Bringing the total dividend for the year to N2.02 kobo, in view of the fact that the bank had paid an interim dividend of 25 kobo during the year under consideration. Payment date is March 23, 2017.
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