GTBank Gets CBN’s Approval-In-Principle For Holdco Structure
By Our Correspondent
Nigeria’s tier 1 lender, Guaranty Trust Bank (GTBank) Plc, says it has obtained an approval-in-principle from the Central Bank of Nigeria (CBN) to commence a formal process of restructuring to a financial holding company.
The ban stated this in a statement released on Wednesday and signed by the Company Secretary, Erhi Obebeduo.
According to the Lender the restructuring will be implemented by means of a scheme arrangement between the Bank and its shareholders in pursuant to companies and allied matters act (CAMA).
Guaranty Trust Bank’s board said it expects the HoldCo structure will have greater strategic flexibility to adapt to future business opportunities as well as market and regulatory changes than is currently the case.
The bank explained: “Under the restructuring, it is proposed that the issued shares in the bank be exchanged on a one-for-one basis for the shares in the financial holding company.
“The bank’s existing Global Depositary Receipts (GDRs) are also proposed to be exchanged on a one-for-one basis for new GDRs to be issued by the financial holding company.”
It explained further that it board of directors made the decision to embark on the restructuring following a comprehensive strategic evaluation of the operating and competitive environment of the Nigerian banking sector in the near term.
“The financial holding company will be regulated by the CBN as an Other Financial Institution and listed on the official list of the Nigerian Stock Exchange and the London Stock Exchange.
“Concurrently, the bank will be delisted from the official list of the NSE and the LSE, and re-registered as a private limited liability company under the relevant provisions of the Nigeria’s corporate legislation. GTBank will continue to be subject to the full suite of CBN banking regulations,” it stated.
