Guaranty Trust Bank (GTBank), Nigeria’s biggest bank in terms of market capitalisation, has obtained an approval-in-principle from the Central Bank of Nigeria (CBN) to commence a formal process of restructuring to a financial holding company.
This was announced in a statement released on Wednesday, which was signed by Erhi Obebeduo, company secretary at GTBank. The statement said that the restructuring will be implemented by means of a scheme arrangement between the Bank and its shareholders in pursuant to companies and allied matters act (CAMA).
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“Under the restructuring, it is proposed that issued shares in GTBank be exchanged on a one-for-one basis for the shares in the financial holding company,” the statement read.
“The Bank’s existing global depository 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 expects that the financial holding company will have greater strategic flexibility to adapt to future business opportunities as well as market and regulatory changes that is currently the case.”
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GTBank further said it will be delisted from the official list of Nigerian Stock Exchange (NSE) and London Stock Exchange (LSE), and re-registered as a private limited liability company under relevant provisions of Nigeria’s corporate legislation.
Furthermore, in the statement, GTBank also stated that it has obtained a “no-objection” from Securities and Exchange Commission (SEC) in connection with the proposed scheme (CAMA).
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The board of directors at GTBank made the decision to embark on restructuring, following a comprehensive strategic evaluation of the operating and competitive environment in Nigeria’s banking sector in near term.
The bank now joins Access Bank and Sterling Bank that have signified their intention to restructure into a holding company, amid pressured earnings from the banking sector.