Jaiz Bank Refutes Alleged Board Rift, Floats N3.3billion Equity

The management of Jaiz bank plc says their is no deep rift between the directors of its board as reported in some sections of the media.

The management said there couldn’t be an extra-ordinary general meeting to raise N3.3 billion equity if the said rift existed. It said the approval obtained under the chairmanship of Dr. Umaru Mutallab FCA, CON is a testimony that the stakeholders are working together for the is interest of the bank.

The statement is quoted as saying “as a testimony to the absence of a rift, the Board and Shareholders of the Bank just commenced the process of raising additional equity of N3.3 billion (three billion, three hundred million naira) through a private placement of 5,076,923,077 (five billion, seventy-six million nine hundred and twenty-three thousand and
seventy-seven) ordinary shares of 50kobo at 65kobo per share.

The proposed placement was approved at an Extra-Ordinary General Meeting (EGM) held on 28th of October 2020 at the Bank’s Head Office in Abuja under the Chairmanship of Dr. Umaru Mutallab FCA, CON. The proposed capital raising exercise is an affirmation of the confidence the Board and Shareholders have in the prospects of the Bank despite the economic uncertainties occasioned by the Covid-19 pandemic”.

The bank said what ensued between directors of the company is a common expression of opinion on issues obtainable in every board meeting. It said the disagreement which has been resolved arose from the matter of succession for the current Managing Director, considered by the Board as the expiration of his contract approached.

The statement said while some Directors of the Bank were of the opinion that a change of leadership was required to pursue some critical strategic goals, others believed that given the very impressive performance of the current Management.

The bank said Board nonetheless resolved to appoint a new successor in person of Mr. Muhammad Shaheed Khan, a decision which has since been rescinded at a subsequent meeting of the Board.

It said, “the Board’s resolution to rescind its decision and consequently discontinue the appointment process was in line with the terms and conditions of the offer letter issued to Mr. Khan since the
offer was subject to relevant regulatory approvals”.

Jaiz Bank plc assured Regulators, Bankers, Shareholders, Customers, Investors, Strategic Stakeholders and the General Public to disregard reports of rift between directors as the bank was focused on its mandate.

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