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Guaranty Trust Bank Plc announced that it has obtained approval in principle from the Central Bank of Nigeria (CBN) to operate as a financial holding company.
This disclosure was made by the Board of Guaranty Trust Bank Plc in a press release sent to the Nigerian Stock Exchange.
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The press release reads in part,
“Guaranty Trust Bank plc (GTBank or the Bank) is pleased to announce that it has obtained the approval in principle of the Central Bank of Nigeria (CBN) to begin the formal process of reorganizing the Bank into a financial holding company (The Restructuring ), which will be implemented by way of an agreement between the Bank and its shareholders under the Companies and Allied Matters Act (the Scheme). “
However, the bank also obtained “No Objection” from the Securities & Exchange Commission (SEC) in relation to the proposed Scheme.
READ MORE: GTBank Plc to consider a holding structure
What you should know
Nairametrics reported in March that Guaranty Trust Bank Plc (GTB) chief executive Segun Agbaje revealed that the Tier 1 bank is currently considering a holding structure.
Agbaje during the company’s earnings call at the time of the report in March, revealed that a holding structure will allow the bank to keep pace with the latest trends in the Nigerian financial services industry.
(READ MORE: GT Bank will reveal new MD / CEO pick by October)
Overview of the renovation
As part of the Restructuring, it is proposed that the shares issued by the Bank be exchanged one by one with the shares of a financial holding company. It is also proposed to exchange the Bank’s existing global deposit receipts (GDRs) on an individual basis with the new GDRs that will be issued by the financial holding company.
Subject to the approval of the Plan by the shareholders of the Bank, the competent regulatory authorities and the High Federal Court of Nigeria; the holding will have an organizational structure used by a significant number of major financial institutions globally.
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What to expect
The financial holding will be regulated by CBN as an Other Financial Institution and listed on the official list of the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE).
At the same time, the Bank will be removed from the official list of NSE and LSE and re-registered as a private liability company under the relevant provisions of Nigerian corporate law.
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However, the bank will continue to be subject to the full suite of CBN banking regulations.
