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;