GTbank to Restructure to Financial Holding Company

The Guaranty Trust Bank Plc said it has received approval from the Central Bank of Nigeria and no-objection from the Securities & Exchange Commission to commence its reorganisation or the Restructuring to a financial holding company.

In a statement sent to the Nigerian Stock Exchange, the bank said the reorganisation will be done by means of a scheme of arrangement between the bank’s shareholders and its management in accordance with the Companies and Allied Matters Act (the Scheme).

Stating the reason for the restructuring, the bank said the decision was in line with the outcome of its comprehensive strategic evaluation of the operating and competitive environment of the Nigerian banking sector in the neart term.

It, therefore, said that the new financial holding company will have a greater strategic flexibility to adapt to future business opportunities as well as market and regulatory changes the present GTBank.

The lender said it has proposed that the present shares of the financial institution be exchanged on a one-for-one basis for the shares in a financial holding company. It also proposed that existing Global Depository Receipts (GDRS) are exchanged on a one-for-one basis for new GDRs to be issued by the financial holding company.

The lender added that 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 the a significant number of major financial institutions globally.