The Oyo State Government has set aside N691.3 million to invest in any future rights issuances by Wema Bank Plc.
The announcement was made in a press statement released after the Oyo State Executive Council meeting on April 23rd, 2024. The statement read,
“The sum of N691,307,039.86 to be invested in Wema Bank rights issuance programme as part of plans to secure the future of Oyo State.”
Concerning Wema Bank’s shareholding structure, strategic shareholders own 51.69% of the bank with Neemtree Limited, SW8 Invest Company, and Petrotab Limited holding 28.25%, 14.90%, and 8.54% respectively.
Governments shareholding in the bank is at 8.06%, with the bulk of the government shareholding held by Odu’a Investment Company Limited, which holds a 7.93% shareholding in the bank.
Odu’a Investment Company Limited is a holding company owned by the six state governments of Southwest Nigeria, namely Oyo, Ogun, Ondo, Ekiti, Osun, and Lagos States.
The group has footprints in different sectors including real estate, oil and gas, and manufacturing. Its subsidiaries include Lagos Airport Hotel, Wemabod Estate, E&O Power and Equipment Leasing, and Western Hotels. Apart from Wema Bank, it also owns stake in Lafarge Africa, and Nigerite Limited.
Recall that in December 2023, Wema Bank carried out a rights issue programme, where the bank issued 8,572,103,573 ordinary shares of N0.50 at N4.66 per share, raising N39.95 billion.
Through its December rights issue, the bank has been able increase its paid-up share capital to N55.07 billion. However, with the new paid-up capital requirements announced by CBN, the bank is still far off from a paid-up capital of N200 billion required to keep its national banking license.