Nigeria’s Central Bank, Securities and Exchange Commission Approves GTBank Holdco Structure

The financial holding company will be regulated by the CBN as another Financial Institution and listed on the Official List of the Nigerian Stock Exchange and the London Stock Exchange (the LSE)

Guaranty Trust Bank Plc has obtained the approval-in-principle of the Central Bank of Nigeria (CBN), and Securities and Exchange Commission (SEC) to begin the formal process of the reorganisation of the bank to a financial holding company (HoldCo).

The scheme will be implemented by means of a scheme of arrangement between the bank and its shareholders pursuant to the Companies and Allied Matters Act (CAMA).

The bank has also obtained the “No-objection” of the Securities & Exchange Commission in connection with the proposed scheme.

Read also: http://Nigeria’s Central Bank Issues Guidelines For N75Bln Youth Investment Fund

Overview of the restructuring showed that its issued shares will 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.

Your Friends Also Read:  Egypt’s Sisi, Trump agree to reject "foreign exploitation" in Libya

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.

Read also: http://Nigeria’s Guaranty Trust Bank reacts to takeover claims

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.

Your Friends Also Read:  Zambia Airways Receives First Aircraft Ahead of December 1 Maiden Flight

The financial holding company will be regulated by the CBN as another Financial Institution and listed on the Official List of the Nigerian Stock Exchange and the London Stock Exchange (the LSE)

Concurrently, the bank will be delisted from the Official List of The NSE and the LSE, and re­registered as a private limited liability company under the relevant provisions of Nigeria ‘s corporate legislation.

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


All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.
Your Friends Also Read:  Yellow Fever Kills 76 In Three Nigerian States

Contact: digital@newscentral.ng

Total
3
Shares

Leave a Reply

Previous Article

Nigeria's Apex Bank Expends N3.5 Trillion to Cushion COVID-19 Effect

Next Article

Dangote Cement Posts N761.4 Bn Revenue In 9 Months

Related Posts
Powered by Live Score & Live Score App