GTBank gets CBN approval-in-principle for financial Holdco structure, no-objection of SEC

Guaranty Trust Bank Plc has obtained the approval-in-principle of the Central Bank of Nigeria (CBN) to commence the formal process of the reorganisation of the bank to a financial holding company (Holdco).

The restructuring will be implemented by a means of scheme of arrangement between the bank and its shareholders pursuant to the Companies and Allied Matters Act.

The bank has also obtained the “No-Objection” of the Securities and Exchange Commission (SEC) in connection with the proposed scheme.

Under the restructuring, it is proposed that the bank issued share capital be exchanged on a one-for-one basis for the shares in the financial holding company.

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The bank’s Global Depository Receipts (GDRs) are also proposed to be exchanged on one-for-one basis for new GDR to be issued by the financial holding company.

The financial holding company will be regulated by the CBN as an Other Financial Institution and listed on the Official List of Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE).

Concurrently, the bank will be delisted from the official list of the NSE and the LSE, and registered as a private limited liability company under the relevant provisions of Nigeria’s corporate legislation.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.