Private investors to cough out N11.17bn for stakes in Fidelity Bank

In order to raise money for more expansion of its operation, Fidelity Bank has concluded an arrangement to sell a significant part of its stake to private investors.

The creditor is willing to sell 3.03 billion unissued shares of the company in a private placement dated September 30, revealed.

According to an estimate of the sales by Ripples Nigeria, the private investors are expected to cough-up about N11.17 billion to acquire the 3.03 billion shares.

In the document, Fidelity Bank said the shareholders have approved the sale of stake in the company to the private investors.

“That in furtherance of the provisions of Section 124 of the Companies and Allied Matters Act, 2020 and the Companies Regulations 2021, and pursuant to Paragraphs 9 and 10 of the Articles of Association of the Company, the Board of Directors of the Company be and is hereby authorised to issue, by way of Private Placement, the 3,037,414,308 unissued Ordinary Shares of 50 kobo each in the share capital of the Company (being not more than 30 per cent of the Company’s existing issued shares and paid up capital)to potential investors.” The document reads.

Fidelity Bank stated further, “That the Private Placement shall be carried out in conformity with applicable laws and subject to procurement of all regulatory approvals.