Guaranty Trust Bank Plc on Thursday November 5, 2020, disclosed that it has obtained an approval-in-principle from the Central Bank of Nigeria (CBN) to commence the formal process of reorganising its bank into a holding company (HoldCo).
The bank disclosed this in a notice obtained on the Nigerian Stock Exchange website, which was signed by its Company Secretary, Erhi Obebeduo. The reorganisation would be implemented by means of a scheme of arrangement between the bank and its shareholders pursuant to the companies and Allied Matters Act, adding that it has also obtained the ‘no-objection” from the Securities and Exchange Commission with respect to the proposed scheme.
The bank explained: “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 the 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.”
It explained further that it board of directors 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.