VFD Group’s N7 Billion Divestment from Atiat Limited

VFD Group’s recent decision to divest 57.26% of its stake in Atiat Limited, valued at N7 billion, marks a significant moment in its investment strategy. While divestments are often seen as exits, this move is better understood as a strategic reallocation of capital, signaling the firm’s long-term vision for optimizing its portfolio.

In a disclosure to the Nigerian Exchange (NGX) on February 7, 2025, VFD Group stated that this decision aligns with its broader investment philosophy, ensuring that resources are directed toward more promising and high-growth opportunities.

The Logic Behind the Divestment

Divestments are not always a sign of weakness; rather, they can reflect an investor’s ability to identify, nurture, and extract value at the right time. For VFD Group, this move suggests three core strategic considerations:

1. Capital Reallocation to Higher-Yield Investments

According to Group Managing Director Nonso Okpala, the divestment will allow VFD Group to focus on more lucrative ventures, reinforcing its reputation for agile and forward-thinking investment decisions.

By unlocking N7 billion, VFD can redirect funds toward sectors with higher growth potential, including fintech, digital banking, and alternative investments, where emerging trends indicate exponential returns on capital.

2. Timing the Market for Maximum Value Extraction

Atiat Limited has demonstrated strong financial performance since its formation through a 2022 merger between ATIAT Leasing and VFD Bridge Limited. Some key financial highlights include:

• Revenue Growth: Gross earnings surged from N2 billion in 2021 to N9.7 billion in 2024.
• Profitability Turnaround: Profit before tax (PBT) improved from a loss of N30.4 million in 2021 to a profit of N1.4 billion in 2024 (unaudited).
• Stronger Shareholder Value: Shareholders’ funds grew from N327 million in 2021 to N8.2 billion in 2024.

Given this financial trajectory, VFD Group’s exit strategy appears to be well-timed, allowing it to sell at a peak valuation and reinvest elsewhere.

3. Portfolio Optimization and Strategic Streamlining

VFD Group’s investment strategy has always been dynamic and adaptive. The firm is known for identifying opportunities, scaling businesses, and making calculated exits when necessary.

By divesting its stake in Atiat, VFD is refining its portfolio—consolidating investments into sectors that align with its long-term value-creation strategy rather than holding onto assets for sentimental reasons.

A Look at VFD Group’s Broader Investment Philosophy

VFD Group is not a passive investment firm; it actively shapes the businesses it invests in and ensures that capital is always positioned where it can deliver the highest impact. Its portfolio includes financial services, real estate, technology, and venture capital investments, with a strong emphasis on disruptive innovation and digital transformation.

The divestment from Atiat suggests that VFD Group is realigning itself for the next phase of financial market opportunities. Whether this means greater involvement in capital markets, digital banking, or private equity, the firm is clearly positioning itself for a more aggressive growth trajectory.