BEVERLY HILLS, November 06, (THEWILL) – Guaranty Trust Bank (GTBank) Plc announced that it has obtained an approval-in-principle from the Central bank of Nigeria (CBN) to now 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 (NSE) adding that it also obtained the “No-objection” of the Securities & Exchange Commission (SEC) to the deal.
“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 (the CBN) to commence the formal process of the reorganization of the Bank to a financial holding company (The Restructuring), which will be implemented by means of a scheme of arrangement between the Bank and its shareholders pursuant to the Companies and Allied Matters Act (the Scheme).”
Segun Agbaje, Chief Executive Officer (CEO) of the bank had in March disclosed that the tier-1 bank was considering a holding company structure.
Speaking at the company’s earnings call, he stated that a holding company structure will enable the bank to keep up with the latest trends in the Nigerian financial services industry.
Subject to the approval of the Scheme by the Bank’s shareholders, the relevant regulatory authorities, and the Federal High Court of Nigeria; the holding company will have an organizational structure that is used by a significant number of major financial institutions globally.
Under the Restructuring, it is proposed that the issued shares of the Bank will be exchanged on a one-for-one basis for the shares in a financial holding company while 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.
