BusinessEconomyNews

VFD Group Restates Commitment to Shareholders’ Welfare, Plans Additional ₦30 billion Capital Raise

By Barnabas Esiet.

VFD Group Plc, a leading proprietary investment company listed on the main board of the Nigerian Exchange (NGX) has reiterated it’s unwavering commitment to improving the economic welfare of its shareholders.

Nonso Okpala, the Group Managing Director and Chief Executive Officer, re-echoed this sentiment during the company’s 8th Annual General Meeting (AGM) held recently.

The virtual event brought together the company’s shareholders, regulators, company directors, government representatives, and members of the media.

Okpala projected a critical growth phase for the company in the coming five years with effect from the current year in the Group’s evolution, rightly tagged “A New Dawn.”

He highlighted the significance of the firm’s transition from a founder-led institution to a publicly quoted, multiple shareholder-led company with a strategic vision of protecting minority interests.

He stated, “To facilitate this transition, VFD Group Plc has developed a comprehensive framework that encompasses a new shareholder structure, a refined investment philosophy, and a redefined corporate culture centred around its evolving identity.

“Integral to the success of this framework is the Company’s commitment to maintaining a robust capital base to effectively navigate evolving market conditions.

” In line with this, the Group remains focused on future plans for an additional ₦30 billion raise, which received shareholders’ approval during the AGM.”

While the specific form of the proposed capital raise has not yet been unveiled, this landmark mix is expected to strengthen the financial position and support future initiatives, acquisitions, and growth capital required for the Group’s investee companies’ expansion.

For his part, the Olatunde Busari, the Group Chairman, noted that for the past three years, the firm has strategically laid the foundation for the calibre of investment company it desires to become.

He recalled that in 2023, the Group took a major step through restructuring towards attaining a proprietary investment company status, aligning the management structure and organisational model with key strategic objectives.

He highlighted the company’s major milestone during the previous year, that have helped in shaping its history and laying a strong foundation for outstanding performance in 2024.

The company recorded growth in key financial metrics, with gross earnings rising by 33% to ₦45.1 billion from ₦33.8 billion year-on-year, and asset growth of 45.0% from ₦151.5 billion in 2022 to ₦219.4 billion in 2023.

Based on this performance, the Board recommended a bonus share of four new shares for every one share previously held, which was ratified by the shareholders during the meeting.

Comment here