VFD Group secures Board approval to divest N7 billion stake in Atiat Limited, states reason
VFD Group Plc has announced that its majority shareholder, Osnon Capital Limited, has acquired 13.2 million ordinary shares of the company, valued at N211.2 million.
The development was disclosed in a statement published on the Nigerian Exchange and signed by the Company Secretary, Olalekan O. Fasugba.
According to the announcement, the shares were purchased at a price of N16.00 each on May 12, 2025, with the transaction recorded under the identification code NGVFDGROUP04.
As of December 31, 2024, Osnon Capital held 242,207,190 shares in VFD Group, representing a 19.12 percent stake.
Following this latest purchase, its total holding has increased to 255,407,190 shares, giving it a revised stake of 20.17 percent.
This purchase is expected to boost investor confidence, especially as it follows a series of positive developments within the company in 2025.
A wave of positive events
VFD Group has experienced a wave of positive developments so far in 2025.
In February, the Group announced a capital injection of N5 billion into its flagship digital bank, VFD Microfinance Bank (V Bank), effective February 18.
The move is aimed at boosting the bank’s capacity to deliver innovative financial services and deepen its market presence.
Building on that momentum, the following month, the Board approved new investments in Abbey Mortgage Bank Plc and Bvndle Loyalty Limited, a growing e-commerce platform.
The Board also greenlit funding for its international subsidiaries, VFD UK and VFD South Africa, to support their ongoing expansion across the United Kingdom and African markets.
Financially, the VFD made a strong comeback in 2024, reporting a pre-tax profit of N11.2 billion, a remarkable turnaround from the N1 billion loss posted in 2023.
This recovery was driven largely by a 97.95% surge in investment income, which rose to N74.5 billion from N37.6 billion the year before.
The positive trend has continued into 2025.
In the first quarter alone, net investment income climbed to N17.9 billion, a 34.45% increase year-on-year, while pre-tax profit rose to N4.1 billion, up from N3.04 billion in Q1 2024.
Market trend
VFD Group ended 2024 with a year-to-date gain of 9% on the Nigerian stock market, as its share price rose from N40.60 to N44.40.
January 2025 saw no price movement, with the stock holding steady at N44.40 despite a trading volume of 4.3 million shares.
Momentum picked up in mid-February, driving the stock above the N50 mark and closing the month at N52.40.
In March, the stock closed at N47.20.
However, after a bullish surge in early April that pushed the share price above N70, the company announced a price adjustment from N96.00 to N15.60, effective April 22, 2025.
The adjustment was made to accommodate a 5-for-1 bonus issue, through which shareholders would receive five additional shares for every one held.
So far in May, the company’s shares are trading at N15.00.
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