Wednesday, 17 September 2014

Access Bank MD Wigwe’s Tenure Rated Low, As Bank Gets NSE Suspension



Not a few shareholders of Access Bank are poise for showdown at the next shareholders meeting slated for October 13, 2014 over the dwindling fortune of Access Bank since the current MD took over the mantle of leadership.
Aside high rate of Staff corruption, payment of fines to CBN are grounds for their grouse. Just yesterday, Access Bank has been suspended technically from the Stock Exchange Market.
The Nigerian Stock Exchange on Monday approved the technical suspension of the shares of Access Bank Plc to enable the bank to preserve shareholders’ value as it moves to raise up to N68bn additional capital.
According to the Exchange, technical suspension is the interruption of price movement in listed shares for a specified period so that any dealings in the shares which occur during the period of the suspension will not result in change in price.
The Exchange explained in a statement posted on its website that it granted “anticipatory approval” for Access Bank’s shares to be placed on technical suspension following an application made by the bank.
It added, “The bank will hold an Extraordinary General Meeting on Monday, October 13, 2014 to seek its shareholders’ authorisation for the Board of Directors to raise additional equity capital in the sum of up to N68bn by way of a rights issue.
“The board believes that the technical suspension is in the overall interest of the bank’s shareholders and will preserve the shareholders’ value, on account of the proposed corporate action.”
According to the Exchange, the technical suspension will be lifted on January 27, 2015 and normal trading activities will resume on January 28, 2015.
Access Bank shareholders had on May 30 at its 25th Annual General Meeting approved plans by the bank to raise $1bn to strengthen its operations and enable it to achieve its goal of becoming one of the top three banks in the country.
The bank had explained at the yearly meeting that the amount would be raised in tranches at a date to be determined by its directors.
Access Bank had in June issued a $400m Eurobond

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