Shareholders of VFD Group Plc, have approved the Company’s quest to raise additional N30 billion in capital to maintain a robust capital base to effectively navigate evolving market conditions.
The shareholders gave their approval at the Company eighth Annual General Meeting (AGM) held yesterday in Lagos.
While the specific form of this capital raise, whether through debt or equity, will be disclosed in due course, this significant infusion will undoubtedly strengthen the financial position and support future initiatives, acquisitions, and growth capital required for the Group’s investee companies’ expansion.
Also, the shareholders approved the Board recommendation of a bonus share of four new shares for every one share held.
Speaking at the event, the chairman of VFD Group, Olatunde Busari stated that over the past three years, the company has strategically laid the groundwork for the kind of investment company it aspires to be.
He noted that in 2023, VFD Group Plc took a major step by restructuring the firm to enhance its focus as a proprietary investment company, aligning the management structure and organisational model with key strategic objectives.
Busari highlighted the company’s significant milestones achieved during the past year, which have significantly shaped its history and laid a strong foundation for accelerated performance in 2024, saying that these achievements remain strong indicators of VFD Group’s unwavering commitment to the welfare of its shareholders.
The Group managing director and chief executive officer of VFD Group, Nonso Okpala, reiterated the monumental significance of the next five years, beginning from 2024, contextualising a critical growth phase in the Group’s evolution, aptly themed ‘A New Dawn’.
He noted the importance of the Group’s transition from a founder-led organisation to a publicly quoted, multiple shareholder-led entity, and a strategic vision of the Group’s inclusive mindset of equally protecting minority interests.
“To facilitate this transition, VFD Group 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,” he said.
Okpala reassured the management’s continuous commitment to strengthening stakeholder relations as well as business performance for the year ahead.
The company for the year ended December 31, 2023 recorded growth in key financial metrics, with gross earnings increasing by 33 per cent to N45.1 billion from N33.8 billion year-on-year, and asset growth of 45.0 per cent from N151.5 billion in 2022 to N219.4 billion in 2023.
