The shareholders of GTBank Plc have approved the holding company structure for the bank, as they expressed excitement over the benefits they would derive from the new structure.
At the court-ordered meeting held on Friday, which was attended by Nairametrics, the investors gave their approval to the company for the transfer of the 29,431,179,224 ordinary shares of 50 kobo each in the issued and paid-up share capital of the bank held by them to Guaranty Trust Holding Company Plc.
Expressing his members’ reactions to the planned restructuring, the founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, explained that the shareholders were excited because the arrangement that the bank put in place was devoid of complexities usually known as share reconstruction.
He said, “We are excited about the development because we are going to get value as everything we have would be transferred to the holding company. There will be no manipulation as a result of reconstruction that usually leads to fractional shares.”
Also commending the bank’s leadership and ingenuity, the President, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, noted that:
“GTBank has over the years proven to be a force and leading initiator of revolutionary advancement and technology based development in the nation’s banking industry, and we look forward to the growth and advancement it is sure to bring into the new business areas it will be taking on with the Holdco structure.
Speaking at the court-ordered meeting on Friday, Managing Director/CEO, GTBank Plc, Mr. Segun Agbaje, explained that in line with the Central Bank of Nigeria (CBN)’s regulations, which require the separation of commercial banking business from other financial services businesses, the bank was adopting a HoldCo structure.
“Under the new structure, existing shareholders of GTBank would be migrated to Guaranty Trust Holdings via a share-for-share exchange between the shareholders of GTBank and GTHoldings.”
While explaining the benefits of the HoldCo structure, Agbaje explained that the overall strategy was to create an operating model that would profitably grow the bank’s presence in the market for commercial banking and non-banking financial services, in order to achieve the aspiration to be the dominant financial services group.
What you should know the HoldCo structure
- It was reported when GTBank said it wanted to operate as a financial holding company from 2021. This will make the bank a subsidiary of the new structure and will lead to the delisting of GTBank from the Nigerian Stock Exchange (NSE) and the listing of GT Holdco on the bourse.
- To make this a reality, the firm has obtained an authorization from a Federal High Court sitting in Lagos. According to GTBank, the order for a Court-Ordered Meeting (COM) was obtained on November 6, 2020.
