GTBank Gets Regulatory Nods For A Holding Structure

GTBank 9M 2020 profit down by 3% YonY to N142.3bn, on rise in Impairment Charges, Opex
Follow Us On Social Media
  •  
  • 1
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
    1
    Share

Guaranty Trust Bank Pic is pleased to announce that it has obtained the approval-in-principle of the Central Bank of Nigeria (CBN) to commence the formal process of the reorganization of the Bank to a financial holding company, 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 Bank has also the “No-objection” of the Securities & Exchange Commission (SEC) in connection with the proposed Scheme.

Overview of the Restructuring

Under the restructuring, it is proposed that the issued shares of the Bank be exchanged for a one-for-one basis for the shares in a financial holding company. The Bank’s existing Global Depositary Receipts (GDRs) are also proposed to be exchanged for 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 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 holding company will have greater strategic flexibility to adapt to future business opportunities as well as market and regulatory changes that is currently the case.

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 organisational structure similar to that used by a significant number of major financial institutions.

READ  Face Mask Can Cause Failed ATM transactions, Says Fidelity Bank

The financial holding company will be regulated by the CBN as the Other Financial Institution (OFI) and listed on the official list of the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE) Concurrently, the Bank will be delisted from the official list of the NSE and the LSE, reregistered as a private limited company under the relevant provisions of Nigeria’s corporate legislation.

GTBank will continue to be subject to the full suite of CBN banking regulations.

 


Follow Us On Social Media
  •  
  • 1
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
    1
    Share
  •  
    1
    Share
  •  
  • 1
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Related posts