C&I Leasing Rights Issue FAQ

1. What is a rights issue?

A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market. The company issues new shares to the public in order to raise capital.

But until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares.

2. Who is C&I Leasing?

C & I Leasing Plc is Nigeria’s foremost leasing company and a leading brand for finance leases, and other ancillary services in Nigeria. The company, which started as a consumer finance leasing company licensed by the Central Bank of Nigeria in 1991, has grown to become a diversified, leasing and business service conglomerate providing support services to various indigenous and multinational organizations in West Africa in:

• Fleet Management
• Personnel Outsourcing
• Marine Services

3. Why is C&I Leasing raising funds through a rights issue?

C&I leasing wishes to use the proceeds to:

• Capital restructuring – Ensure optimum capital structure that appropriate balance of debt and equity
• Repay short term loans
• Acquire equipment and vessels to expand their marine services business
• Provide working capital requirements as the needs arise

4. How much capital is C&I leasing raising?

N3.5 billion

5. Issue Price:

N6.00 per share

6. What effect will the rights issue have on C&I Leasing’s shareholders’ equity?

Current existing shares: 404,252,500

Rights shares: 539,003,333

Post rights issue shares: 943,255,833

7. Issue criteria:

4 new rights for every 3 shares held

Each right entitles the shareholder to 1 new share

8. Is there a minimum subscription to complete the rights offering?

No

9. Who is eligible to purchase rights?

Shareholders of C&I leasing at the record date can use their rights to subscribe to newly issued shares

Non-shareholders can buy rights from the market from C&I Leasing shareholders selling their rights at market value

10. When can I subscribe to the rights issue?

The issue opened on November 17 and closes on December 27

11. How long will it take for me to get my shares after the rights issue?

CSCS accounts will be credited and Investors will receive share certificates on the 29^th of January 2020

12. How do I subscribe to the rights issue?

Contact customer service at ARM securities at +234 (1) 2701096, 2701653 or customerservice@armsecurities.com.ng to gain access to application forms

13. Can I sell my Rights – can they be traded?

Yes, A right is an option to buy shares, but you are not obligated to do so. You may decide not to exercise your right to purchase all or some of the shares you are entitled to, in which case you can sell all or some of your rights at market value.