Admin l Friday, November 06, 2020
LAGOS, Nigeria – The Central Bank of Nigeria, CBN has given the go ahead to Guarantee Trust Bank to structure and position itself into a full financial holding company.
The approval obtained in principle is being implemented by management of the bank and its numerous stakeholders in line with the provisions of the Companies and Allied Matters Act.
The Securities & Exchange Commission (SEC) has also okayed the proposal.Under the new arrangement, the current bank shares will be exchanged on a one-for-one basis for the shares of the financial holding company.
The Bank’s existing Global Depository 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.
The Board of Directors of GTBank made the decision to restructure 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 holding company will have greater strategic flexibility to adapt to future business opportunities as well as market and regulatory changes than is currently the case.
Subject to the approval of the proposal by the Bank’s shareholders, the relevant regulatory authorities and the Federal High Court of Nigeria, the holding company will have an organisational structure similar to that used by a significant number of major financial institutions globally.
The financial holding company will be regulated by the CBN as another Financial Institution and listed on the Nigerian Stock Exchange (NSE) and the London Stock Exchange {LSE}.
Concurrently, the Bank will be delisted from the NSE and the LSE, and re-registered as a private limited liability company under the relevant provisions of Nigeria’s corporate legislation.
