VFD Group divests 57.26% stake in Atiat in N7bn deal

By Chukwuma Umeorah

VFD Group Plc has announced the divestment of its 57.26 per cent stake in Atiat Limited, a key subsidiary, in a transaction valued at approximately N7 billion.

VFD, a proprietary investment company, notified the Nigerian Exchange Limited (NGX) and the investing public that the Board approved the Company’s full divestment of 343,546,646 ordinary shares of its holdings in Atiat.

Speaking on the divestment, Group Managing Director of VFD, Nonso Okpala, stated that the development marked a significant milestone for both companies as they embark on new growth trajectories. “This transaction is a testament to the quality of our investment decisions and our ability to unlock value for our investors. The divestment of our stake in Atiat Limited is a strategic move that allows us to redeploy capital into higher-growth opportunities while maintaining our focus on delivering exceptional returns for institutional and retail investors,” Okpala said.

He added that the move to divest aligns with VFD Group’s strategic framework, which emphasises optimising its portfolio by directing resources toward high-growth opportunities. “The N7 billion transaction reflects the strong value VFD Group has created under its stewardship and its ability to execute disciplined investment decisions that maximise shareholder returns,” he said.

The Group said this decision followed a written resolution of its Board of Directors pursuant to Section 289(8) of the Companies and Allied Matters Act 2020. Over the years, Atiat has evolved into a formidable player in Nigeria’s financial services sector.

Under VFD Group’s leadership, the company expanded its market presence, achieved significant financial milestones, and built a solid governance framework that positions it for continued success. The divestment is a logical next step in Atiat’s growth journey, allowing it to chart an independent course while capitalising on new opportunities in the financial ecosystem.

Atiat Limited remains a strong, financially sound, and forward-focused institution. Over the last four years, the company has recorded exponential growth in revenue, profitability, and shareholder value, with year-on-year cumulated average growth in gross earnings rising from N2 billion in 2021 to N9.7 billion in 2024, Profit Before Tax (PBT) growing from a loss of N30.4 million in 2021 to N1.4 billion in 2024 (unaudited). Shareholders’ funds have also surged from N327 million in 2021 to N8.2 billion in 2024.