VFD Group Divests ₦7bn Stake In Atiat Limited

VFD Group Plc has announced the divestment of its 57.26 percent stake in Atiat Limited, a transaction valued at over ₦7 billion.

This decision marks a strategic shift for the investment company as it seeks to redeploy capital into higher-growth opportunities.

In a notice filed with the Nigerian Exchange Limited, VFD Group’s Company Secretary, Gbeminiyi Shoda, disclosed that the board approved the full divestment of 343,546,646 ordinary shares in Atiat Limited through a written resolution dated February 4, 2025. The divestment was carried out in accordance with Section 289(8) of the Companies and Allied Matters Act 2020.

Confirming the transaction, VFD Group’s Group Managing Director (GMD), Mr. Nonso Okpala, described the move as a strategic step toward unlocking shareholder value. He emphasised that the decision aligns with the company’s long-term vision of focusing on higher-yield investment opportunities.

“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,” Mr. Okpala stated.

During VFD Group’s leadership, Atiat Limited experienced significant growth, expanding its market presence and strengthening corporate governance. The company’s gross earnings surged from ₦2 billion in 2021 to ₦9.7 billion in 2024, while profit before tax improved from a loss of ₦30.4 million in 2021 to ₦1.4 billion in 2024 (unaudited). Shareholders’ funds also grew from ₦327 million in 2021 to ₦8.2 billion in 2024.

Following the divestment, Atiat Limited is now set to operate independently, deepening its presence in leasing, consumer lending, and bridge financing. The company also has ambitions to expand into banking and insurance, positioning itself for long-term sustainability and growth.

Atiat Limited’s Managing Director\Chief Executive Officer (CEO), Mr. Kanayo Eni-Ikeh, welcomed the transition, expressing confidence in the company’s future.

“This is not just a transition; it is an opportunity to accelerate our growth and drive even greater value for our investors, customers, and partners. We are grateful for VFD Group’s contributions over the years and look forward to building on this strong foundation as we expand our offerings, strengthen our market position, and pursue new frontiers of success,” Mr. Eni-Ikeh said.

Meanwhile, VFD Group Plc has reported a profit of ₦10.4 billion for the year ended December 31, 2024, marking a strong recovery from a loss of ₦750.4 million recorded in the previous year.