VFD Group Plc has announced its share capital has increased to N633m.
That was disclosed by the firm’s Company Secretary, Gbeminiyi Shoda, at a recent annual general meeting in Lagos State.
She stated that the increase involved the creation of additional ordinary shares valued at N0.50k each, aimed at strengthening the company’s financial base and supporting future growth initiatives.
“Shareholders approve that the company’s share capital be and is at this moment increased from N126.68m divided into 253.37m ordinary shares of N0.50k each to N633.42m divided into 1.267 billion ordinary shares of N0.50k by the creation of 1.01 billion ordinary shares of N0.50k each,” Shoda explained.
By expanding its share capital, he stated that VFD aimed to enhance its ability to raise funds for future investments, potential acquisitions, and strategic partnerships.
According to the company secretary, in compliance with the following legal requirements, VFD will revise its Memorandum of Association to show the revised share capital structure, emphasising that the change guarantees lucidity and openness about the conditions, rights, and benefits of the fresh shares, preserving strong corporate governance.
“The share capital of the company is N633,424,550.00 divided into 1.26 billion ordinary shares of N0.50k each with the rights, privileges, and conditions attached thereto as are provided by the Articles of Association of the Company for the time being with power to increase or reduce the capital of the Company into several classes and to attach, thereto, respectively, such preferential, deferred, qualified or special rights, privileges or conditions as may be determined by or by the Articles of Association of the Company,” the statement read in part.
She added that the company directors had been granted expansive borrowing powers, allowing them to borrow money, mortgage company assets, and issue securities such as debentures.
He explained that the decision was made to bolster the company’s financial flexibility, enabling directors to secure funds for business operations and meet financial obligations effectively.
However, he noted that the authority comes with a crucial limitation to safeguarding shareholder interests.
According to Shoda, directors are restricted from exceeding the aggregate of the company’s paid-up share capital and reserves in borrowing or securing funds, except for temporary loans obtained in the ordinary course of business.
He stated that any borrowing beyond that limit required prior approval from a general meeting of shareholders, ensuring transparency and accountability in financial management.
“The directors may exercise all the power of the company to borrow money and mortgage or charge its undertaking, property, and uncalled capital, or any part thereof, and to issue debentures, debenture stock, and other securities, whether outright or as security for any debt liability or obligation of the company or any third party.
“Provided that the aggregate amount for the time being remaining undischarged of money borrowed or secured by the company and all its subsidiaries (other than inter se and apart from temporary loans obtained in the ordinary course of business) shall not, without the previous sanction of the company in general meeting, exceed the aggregate of the paid-up share capital and reserves of the company,” the company secretary elucidated.
PUNCH reported that VFD Group planned to raise N30bn in additional capital through share issuance, global depository receipts, commercial papers, loans, convertible and non-convertible instruments, medium-term notes, and bonds. The move is aimed at bolstering the company’s financial base and supporting its ambitious growth plans.