Non shareholders can partake in N3.2 billion Rights Issue — C & I Leasing MD

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C&I Leasing Plc has said that non shareholders of the company can partake in its ongoing N3.2 billion

The company has also assured shareholders that it would continue to explore new business opportunities, especially in the marine, fleet and outsourcing, to boost its revenue base and increase shareholders’ value.

The 539,003,333 Rights offer opened on November 18, 2019, and will close on December 27, 2019.

Speaking in an interactive session with journalists, weekend, Managing Director of the company, Andrew Otike-Odibi, said: “The Rights is tradable and therefore open to non-existing shareholders, who are willing to buy shares in the company.

“A comparison of the current market price of C&I Leasing, which stood at N7.30 on September 12, 2019, and the offer price of N6.00 for the Rights, shows that the Rights are being issued at a discount of N1.73.

“Not only is the C&I Leasing Rights presenting a better offer in terms of pricing, it is also rewarding in terms of the number of shares that existing shareholders are getting. Subscribing to the C&I Leasing Rights Offer will entail that a shareholder will be paying N24 for four additional shares that are worth N29.2 in the market, which is a gain of N1.3 per share.

It means the C&I Leasing Rights Offer makes more economic sense.”

Explaining the purpose of the offer, Otike-Odibi said: “The purpose of the Rights Issue is to enable expansion of current operations, implement new growth opportunities already identified and optimise the use of technology.”

He pointed out that Nigerian leasing industry is vibrant and can thrive during periods of both economic boom and recession.

According to him, “Between 2013 and 2018, C & I Leasing’s total assets base saw an increase from N19.11 billion to N52.61 billion at a Compound Annual Growth Rate (CAGR) of 22.5 per cent.”

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