Nigeria: Wema Bank considers M&A opportunities, plans to raise N40bn

Wema Bank is considering the acquisition of a fintech firm or a merger with another commercial bank to boost its customer base and transactions.

The bank’s Deputy Chief Executive, Moruf Oseni, who made this known on Friday, August 6, said the Merger and Acquisition (M&A) was part of the bank’s plan to ensure organic growth.

Oseni  said: “In organic growth, there is possibility of a combination; either you merge or you acquire, and this acquisition is not limited to acquiring another financial player in this space or a fintech.

“We are looking at all possible options, whether you like it or not, no matter how efficient you are. In this game, we are playing skill to skill, and we also have huge aspirations to scale up in the shortest possible time.”

Oseni explained further that the acquisition is not limited to the financial sector space, announcing the bank’s plan to sell shares to existing shareholders to raise additional capital of N40 billion by September.

 The bank’s deputy managing director noted that the capital raise would give the bank an expanded base of business over the coming years to compete favourably in the industry.

According to him, “The rights issuance is expected to hit the market in September, this month of August is for us to have a court-ordered meeting to get shareholders together and agree on the scheme of the arrangement.

Oseni added that the bank would reduce its shares in issue before embarking on the rights issue to ensure enhanced growth for shareholders.

He said: “Wema Bank today has a large number of shares in issuance, but before we float the right issue, we need to get the shareholders to reduce the shares in issue and on the back of that we then issue those rights.

“This will not change the shareholding structure of the shareholders. We just want to manage the number of shares in issue, and that will impact on our ratios. It makes sense to have more efficient shares in issue before doing the rights issuance.”

He, however, noted that the bank would embark on a road show from next week to sensitise shareholder groups and associations on growth plans and capital raise.