Fidelity Bank Sells N13.97bn Controlling Shares To Two Investors

15 Apr Fidelity Bank Sells N13.97bn Controlling Shares To Two Investors

Fidelity Bank has sold a 10.4 percent controlling stake in the financial institution through private placement.

The disposed controlling stake worth N13.97 billion was sold to two unnamed investors.

According to a statement released by the bank on Friday, 14 April 2023, the share acquisition was made in late February 2023 after the financial institution put up 3.03 million shares for sale.

The bank disclosed that two applications were received for the shares worth N13.97 billion and that the private placement was 100 per cent subscribed.

The Tier-II bank said the transaction has been approved by the Securities and Exchange Commission (SEC).

In the statement, Fidelity Bank said it: “Announces the result of the Private Placement of 3,037,414,308 ordinary shares of 50 kobo each at ₦4.60 per share, which opened on Wednesday, February 22, 2023 and closed on Thursday, February 23, 2023.

“Two (2) applications were received for a total of 3,037,414,308 ordinary shares in connection with the Private Placement.

“The two (2) applications for a total of 3,037,414,308 ordinary shares were found to be valid, accepted and processed accordingly.

“The Private Placement was therefore 100% subscribed. All applications were received within the Offer period of Wednesday, February 22, 2023 and Thursday, February 23, 2023.

The share sale affords Fidelity Bank with N13.97 billion as funding for its operation at a time the company invested millions to acquire the Union Bank of Nigeria subsidiary in the United Kingdom as part of its growth plan.

It said the Securities & Exchange Commission has cleared the published Basis of Allotment as well as the announcement.

“CSCS accounts of successful allotees will be credited with shares allotted, not later than Friday, May 05, 2023 by the Registrars to Fidelity Bank Plc,” the statement noted.