VFD Group has officially announced the approval from its Board for the divestment of 343,546,646 ordinary shares in Atiat Limited, valued at N7 billion.
This announcement was made public through a disclosure published on the Nigerian Exchange (NGX) on February 7, 2025, and was signed by the company secretary, Gbeminiyi Shoda.
The Board’s decision to divest 57.26% of VFD’s stake in Atiat Limited, as per Section 289(8) of the Companies and Allied Matters Act 2020, signifies a major shift in the company’s investment strategy.
In the disclosure, VFD Group stated:
‘’VFD Group, a leading proprietary investment company, today announced the divestment of its 57.26% stake in Atiat Limited, a key subsidiary, in a deal valued at over N7 billion.’’
According to the release, the decision aligns with VFD Group’s strategy to streamline its portfolio and focus resources on more promising opportunities.
Insights from the Managing Director
In a statement regarding the divestment, Nonso Okpala, Group Managing Director of VFD Group, stated, “This transaction showcases the quality of our investment decisions and our ability to create value for our investors.”
He explained that the decision to divest their stake in Atiat Limited is an initiative aimed at reallocating capital to more promising opportunities, with the goal of maximizing returns for both institutional and retail investors.
Okpala further remarked, “The divestment of our stake in Atiat Limited allows us to invest in higher-growth opportunities.”
Backstory
In August 2022, VFD Group Plc announced the merger between ATIAT Leasing and VFD Bridge Limited.
- Prior to this merger, ATIAT Leasing specialized in providing equipment and vehicle leasing, as well as financing solutions to enhance customer productivity.
- Meanwhile, VFD Bridge was established to offer corporate financing, serving as a conduit to help businesses transition from their current state to their desired goals.
Following this strategic merger, the newly formed entity adopted the name ATIAT Leasing Limited.
To bolster its customer acquisition efforts and ensure sustainable growth, ATIAT Leasing Limited appointed two Executive Directors as part of the merger.
- Obiageli Ejiofor was appointed as Executive Director of Business Development, while Olisa Ifeajuna took on the role of Executive Director of Operations.
According to the disclosure released on February 7, 2025, Atiat Leasing Limited has recorded significant growth in revenue, profitability, and shareholder value, with the year-on-year cumulative average growth in Gross Earnings rising from N2 billion in 2021 to N9.7 billion in 2024.
Profit before tax (PBT) improved from a loss of N30.4 million in 2021 to N1.4 billion in 2024 (unaudited), while shareholders’ funds surged from N327 million in 2021 to N8.2 billion in 2024.
