Diamond Bank Shareholders Endorse Recapitalization Plan
Shareholders of Diamond Bank Ltd unanimously endorsed the recapitalization plan of the board at the 13th annual general meeting held recently in Lagos.
The shareholders were pleased with the resolution presented by the Chairman/CEO, Mr. Pascal Dozie during the special business session of the AGM. The shareholders approved the resolution, indicating a collective desire of the stakeholders to achieve the minimum capital base stipulated by the CBN.
The three phased plan for recapitalization of the bank to the tune of N25 billion is based on the result of an internal appraisal taking into consideration all stakeholders of the bank and the various options available to meet the minimum capital base.
Addressing the shareholders, Mr. Dozie stated that the bank has adequately considered all the stakeholders in reaching the decision to recapitalize vide a combination of methodologies.
He stated that the brand diamond has a very strong equity, hence it will retain the name, while the ownership structure will be expanded to include mostly Nigerians and if need be foreign investors.
He stated that the bank's vision is to be a key player, which it has succeeded in achieving since inception. He went further to reveal that in the event of acquisition, the bank will seek for other banks that meet its strategic fit as well as long term objectives.
Amongst the key resolutions reached at the 13th annual general meeting is the splitting of the par value of the bank's share from N1 to 50k and the subsequent increase of the authorized share capital to seven billion 50k.
The other resolution is the approval of the first phase of the recapitalization plan, which is the offering of shares to new investors by way of private placement.
It will be recalled that Diamond Bank was the first banking institution to endorse the new capital base in the bank's chairman's interview published in the Guardian Newspapers.
Diamond bank in its 2004 financial year ended 30th April appears to have returned to its traditional winning way synonymous with it.
The bank in the report recorded 266% growth in profit, with a profit before tax of N1.162 billion, while the gross earnings rose by 10.5% from N9.0 billion in 2003 to N9.97 billion in 2004.
The result can be described as one rationale for the new optimism of the bank to achieve the new capital base.
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