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Diamond Bank’s N50.38bn Rights Issue: Shareholders Appeal for Extension

Shareholders of Diamond Bank Plc have asked the management of the Bank to extend the closing date of the ongoing Rights Issue to enable them maximize the opportunity to take up their allotted shares. The Rights Issue, which opened on Wednesday, 30 July 2014, is expected to close on Tuesday, 26 August 2014

The appeal for extension was a common theme during the bank’s nationwide Shareholder Forum held in four cities, namely: Lagos, Abuja, Port Harcourt and Owerri.

According to them, huge expenses were incurred during the last Eid-El Fitr celebrations which came up during the last weekend of July while the opening of the Rights Issue was at the end of the same month.  Majority of them explained that coupled with the fact that salary payments are not due for workers in Nigeria until the end of month, raising meaningful investment capital will be a big challenge, hence, the appeal for extension.

In Abuja, Sulaimon Laban noted: “We ended the Eid-El-Fitr celebations not too long ago and this came with some expenses. Currently, many interested investors are low on capital. I will like to invest in the Rights Issue as the shares I have in Diamond Bank are very profitable and I see this as an opportunity to increase the value of my stakes. I hope the bank’s management will accede to the request of shareholders, especially in view of the festivities that have just ended. Many of my friends who are shareholders in the bank feel the same way.”

Alhaja Bilikisu Amuda, a shareholder in Lagos, expressed similar sentiments and hoped that the bank’s management “will appeal to the relevant authorities to have the closing date extended in the interest of concerned shareholders.”

Speaking at the Port Harcourt Forum, Amaopusenibo Obomanu, Exco member of the Port Harcourt Shareholders Association, said, “I think the Diamond Bank Offer is a very good idea and shareholders in Port Harcourt are likely to take up every share because the bank has done very well in the last three years. However, I will like to appeal to the bank’s management to extend the closing date to enable people raise enough money at the end of the month to take up all their rights.”

In Owerri, Prof. R. N. Echebiri of the Department of Agricultural Economics, Michael Opara University of Agriculture, Umudike, Abia State, charged the bank’s management to impress the relevant authorities on the need for an extension to enable shareholders pool enough resources for investment.

He said, “The performance of Diamond Bank has been impressive so far and the bank is currently on top on all indices of performance. I will surely pick up my share and possibly ask for more. In view of the common sentiment at this gathering, I will like to appeal to the bank management, led by Dr. Otti, to make spirited efforts to have the Issue period extended so shareholders can gather enough money to invest. You are aware that this is just the middle of the month and it may be very challenging to raise investment capital.”

Diamond Bank Plc, a leading retail bank in Nigeria, is offering a total of 8,685,145,863 Ordinary Shares of 50 kobo each in the ratio of 3 new Ordinary Shares for every 5 Ordinary Shares held as at 13 June, 2014 at 5.80 per share.

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