Guaranty Trust Bank Plc has stated that it has obtained an approval-in-principle from the Central bank of Nigeria (CBN) to operate as a financial holding company.
The Board of Guaranty Trust Bank Plc, made the disclosure in a press release sent to the Nigerian Stock Exchange.
Part of the statement reads: “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 re-organisation 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).”
However, the bank also obtained the “No-objection” of the Securities & Exchange Commission (SEC) in connection with the proposed Scheme.
According to the statement, “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.
“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.
“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 organisational structure that is used by a significant number of major financial institutions globally”.