Guaranty Trust Bank (GTBank) Plc has announced that it has received an approval-in-principle from the Central bank of Nigeria (CBN) to operate as a financial holding company.
This disclosure was made by the Bank in a press release sent to the Nigerian Stock Exchange (NSE).
The press release added that the bank also obtained the “No-objection” of the Securities & Exchange Commission (SEC) in connection with the proposed Scheme.
“Guaranty Trust Bank plc (GTBank or the Bank) is pleased to announce that it has obtained the approval-in-principle of the Central Bank of Nigeria (the CBN) to commence the formal process of the reorganization of the Bank to a financial holding company (The Restructuring), which 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),” the statement read.
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BizWatch recalls that the Chief Executive Officer (CEO) of GTBank, Segun Agbaje, in March, disclosed that the bank was considering a holding company structure.
Agbaje made this known during the company’s earnings call saying a holding company structure will enable the bank keep up with the latest trends in the Nigerian financial services industry.
Under the Restructuring, it is proposed that the issued shares of the Bank will be exchanged on a one-for-one basis for the shares in a financial holding company.
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 organizational structure that is used by a significant number of major financial institutions globally.
