SAN FRANCISCO, December 06, (THEWILL) – Shareholders of Guaranty Trust Bank (GTB) Plc have approved the restructuring of the bank to a holding company (holdco).
The approval, given at the weekend, paves way for the bank to conclude its transition from a standalone commercial bank to a group structure that allows it to invest in other areas of financial services or other businesses.
At the court-ordered meeting in Lagos, shareholders approved the transfer of entire issued and paid up capital of GTB totalling 29.431 billion ordinary shares of 50 kobo each to a new company to be known as Guaranty Trust Holding Company Plc.
The new company, Guaranty Trust Holding Company (GTHoldings) Plc, will simultaneously allot the same 29.431 billion ordinary shares of 50 kobo each to the former shareholders of GTB in accordance with their shareholdings in the bank.
Managing Director, Guaranty Trust Bank (GTBank) Plc, Mr. Segun Agbaje said the adoption of holdco was necessitated because of existing Central Bank of Nigeria (CBN)’s regulations, which require the separation of commercial banking business from other financial services businesses.
He explained that under the new structure, existing shareholders of GTB would be migrated to Guaranty Trust Holdings through a share-for-share exchange between the shareholders of GTBank and GTHoldings.
According to him, the overall strategy was to create an operating model that would profitably grow the bank’s presence in the market for commercial banking and non-banking financial services in order to achieve the aspiration to be the dominant financial services group.
“I am delighted over the approval by shareholders for the holding company and I assure the investors of a more rewarding future. The bank will not embark on any share reconstruction as the same number of shares they have with the bank will be maintained,” Agbaje said.
