Commercial Law

GTBank translates into Financial Holding Company

Guaranty Trust Bank, one of the leading Nigerian financial institutions is set to re-organize and translate into a financial holding company.

Already, the bank has secured the approval approval-in-principle of the Central Bank of Nigeria(CBN), and a “no objection” from the Securities and Exchange Commission (SEC) to proceed on the reorganization.

The bank is only waiting for the approval of other regulatory bodies, the Federal High Court of Nigeria,and the bank’s shareholders for the start off of the scheme.

GT Bank Company Secretary, Erhi Obebeduo in a statement explained restructuring will be done through a scheme  of  arrangement  between  the  Bank  and  its shareholders pursuant to the Companies and Allied Matters Act (the Scheme).

He explained further: “Under the Restructuring, it is proposed that the issued shares in the Bank be exchanged on 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 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 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 than 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 globally;

The financial holding company will be regulated by the CBN as an Other Financial Institution and listed on the Official List of The Nigerian Stock Exchange (The NSE) and the London Stock Exchange (the LSE}. Concurrently, the Bank will be delisted from the Official List of The NSE and the LSE, and re registered as a private limited liability  company  under  the relevant  provisions of Nigeria ‘s corporate legislation”.

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

GTBank Group (comprising the Bank and its banking subsidiaries) is a leading African banking group. The Group’s principal business is conducted in Nigeria, directly through the Bank where it offers a wide range of commercial banking services to corporate and retail customers.

The Bank also provides commercial banking services to individuals and institutions through its banking subsidiaries in Gambia, Sierra Leone, Ghana, Liberia, Côte D’Ivoire, Tanzania, Kenya, Uganda, Rwanda and the United Kingdom.

 

You should also READ  GT Bank releases 2020 audited report, posts ₦238.1bn Profit Before Tax

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