Obinna Chima
Guaranty Trust Bank Plc yesterday disclosed that it has obtained an approval-in-principle from the Central Bank of Nigeria (CBN) to commence the formal process of reorganising its bank into a holding company (HoldCo).
The bank disclosed this in a notice obtained on the Nigerian Stock Exchange website, which was signed by its Company Secretary, Erhi Obebeduo.
The reorganisation would be implemented by means of a scheme of arrangement between the bank and its shareholders pursuant to the companies and Allied Matters Act, adding that it has also obtained the ‘no-objection” from the Securities and Exchange Commission with respect to the proposed scheme.
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 board expects that the financial HoldCo would have greater strategic flexibility to adapt to future business opportunities as well as market and regulatory changes that is currently the case.
“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.
