GTBank Embarks on Restructuring to Become a Financial Holding
Guaranty Trust Bank Plc has obtained the approval-in-principle to begin the formal process of reorganisation of the bank to a financial holding company.
The bank said it received the Central Bank of Nigeria approval and no objection from the Nigerian Securities & Exchange Commission to commence the restructuring of the bank.
In the statement released on the Nigerian Stock Exchange (NSE), the bank said the formal process of the reorganisation 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).
Explaining the restructuring process, the lender said it is proposing to exchange the bank’s present share on a one-for-one basis for the shares in a financial holding company.
GTbank also proposed that its existing Global Depository Receipts (GDRS) should be exchanged on a one-for-one basis for new GDRs to be issued by the financial holding company.
The bank added that it made the decision to embark on the restructuring after a comprehensive strategic evaluation of the operating and competitive environment of the Nigerian banking sector in the near term.
Therefore, the board of the bank expects the new financial holding company to have a greater flexibility to adapt to future business opportunities as well as market and regulatory changes than is currently the case.
Source: Naija News