GTBank Gets CBN Nod As Holding Company |The Source

By Fola James

Guaranty Trust Bank, GTBank has received the nod of the Central Bank of Nigeria, CBN to begin operation as a holding company.

When the process of restructuring is finalized with the apex bank, the nation’s biggest bank will join deposit money banks, DMBs such as United Bank for Africa, UBA and Sterling Bank Plc that have earlier transformed into financial congloromates.

The arrangement will ensure that the Segun Agbaje-led GTBank is de-registered from the Nigerian Stock Exchange, NSE and London Stock Exchange, NSE.

After which the Holding Company will then go ahead to register as a private limited liability company under relevant provisions of Nigeria’s extant corporate legislation, the bank stated.

Erhi Obebeduo, the company’s secretary, said in a statement on Wednesday that the plan is in line with shareholders’ approval pursuant to the Companies and Allied Matters Act ,CAMA adding that the Securities and Exchange Commission, SEC has approved the process.

According to the statement, the bank has proposed “proposed that issued shares in GTBank be exchanged on a one-for-one basis for the shares in the financial holding company,” the statement said.

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.”

GTBank further stated that the decision to restructure is in line with its strategic evaluation of the operating environment in the country and the need to position for the future.