Why Khan cannot be MD now – Jaiz Bank

Jaiz Bank Plc has explained why Mr. Shaheed Khan cannot be Managing Director of the Bank yet.

Managing Director of the bank, Mallam Hassan Usman, told journalists on Sunday in Abuja that Khan had only a three year conditional offer, which the Central Bank of Nigeria (CBN) did not agree to.

According to Mallam Hassan Usman: “There was no firm offer to Mr. Khan. It was a conditional offer of three years contract. We were unable to get CBN to agree to the offer.

“The conditions were modified, the meeting agreed to stop the process and urge the current management of the bank to continue”.

He added the bank was still carrying out “due diligence” on Khan’s application thus suggesting that Khan is still an applicant and not yet fully engaged by the bank.

Usman also told journalists that Jaiz Bank Plc has commenced the process of raising additional equity of ₦3.3 billion.

This new equity placement, he said, will be raised 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 bank’s shareholders, he noted, have authorised a private placement to raise capital for the bank.

Jaiz Shareholders gave the nod to the board and management to obtain the requisite regulatory approvals for the ₦3.3 billion equity at an Extraordinary General Meeting (EGM) at the bank’s corporate headquarters in Abuja.

The meeting presided over by Alhaji (Dr) Umaru Abdul Mutallab, the Chairman of the bank agreed that the sum of “₦3.3 billion will be used to fund branch expansion, business optimization, upgrade of information technology infrastructure and enhancement of working capital requirements” Usman said.

The Chairman of the bank assured all shareholders that “the additional capital to be realized from the offer would be used judiciously”.

According to him: “The offer is being proposed to deliver specific projects that will accelerate our bank’s growth trajectory as well expand our operational base to meet the current realities of the nation’s banking industry, which will, in turn, further the interest of all shareholders”.

“I assure you that the funds realized are going to be deployed for the projects to which they are meant for,” Mutallab said.