VFD Group Divests Stake in Atiat Limited, Marking a Strategic Shift and Financial Triumph
VFD Group Plc, a prominent proprietary investment company in Nigeria, has finalized the divestment of its 57.26% stake in Atiat Limited, a key subsidiary, for a sum exceeding N7 billion. This strategic move signifies a pivotal moment for both entities, underscoring VFD Group’s commitment to maximizing shareholder value while simultaneously empowering Atiat Limited to embark on a new phase of growth and expansion. The divestment, approved by VFD Group’s board on February 4, 2025, aligns with the provisions of the Companies and Allied Matters Act 2020 and reflects the company’s proactive approach to portfolio management.
Nonso Okpala, the Group Managing Director of VFD Group, emphasized the significance of the transaction in unlocking value for shareholders. He characterized the divestment as a testament to the company’s astute investment decisions and its ability to generate exceptional returns for both institutional and retail investors. By redeploying capital from the Atiat Limited divestment into higher-growth opportunities, VFD Group aims to further enhance its portfolio performance and deliver sustained value creation.
During VFD Group’s ownership, Atiat Limited experienced substantial growth and transformation, marked by expanded market presence, strengthened corporate governance, and impressive financial milestones. The company’s gross earnings witnessed remarkable growth, surging from N2 billion in 2021 to N9.7 billion in 2024. Similarly, profit before tax experienced a dramatic turnaround, rising from a loss of N30.4 million in 2021 to N1.4 billion in 2024 (unaudited). Shareholders’ funds also reflected this positive trajectory, increasing significantly from N327 million in 2021 to N8.2 billion in 2024. This impressive performance underscores the efficacy of VFD Group’s strategic guidance and investment acumen.
Following the divestment, Atiat Limited is poised to chart an independent course, focusing on deepening its presence in key market segments, including leasing, consumer lending, and bridge financing. The company is also exploring expansion opportunities in the banking and insurance sectors, signaling its ambitious growth aspirations. This newfound independence provides Atiat Limited with the flexibility and autonomy to pursue its strategic objectives and solidify its position as a dynamic player in the financial services landscape.
Kanayo Eni-Ikeh, the Managing Director/Chief Executive Officer of Atiat Limited, expressed optimism about the company’s future prospects, viewing the divestment as an opportunity to accelerate growth and create even greater value for investors, customers, and partners. He acknowledged the valuable contributions of VFD Group during its ownership tenure and expressed confidence in Atiat Limited’s ability to build on this strong foundation, expanding its offerings, strengthening its market position, and pursuing new frontiers of success.
The divestment of Atiat Limited comes on the heels of VFD Group’s robust financial performance. The company reported a profit of N10.4 billion for the year ended December 31, 2024, representing a remarkable recovery from the N750.4 million loss recorded in the previous year. This impressive financial turnaround further strengthens VFD Group’s position as a leading investment company and reinforces its commitment to delivering exceptional returns for its stakeholders. The divestment of Atiat Limited marks a strategic and financially sound decision for both companies, positioning them for continued growth and success in their respective markets.
