Nigeria's United Bank for Africa said on Thursday it will seek shareholders' approval to transfer its subsidiaries into a newly-formed holding company, in line with regulatory requirements to separate core lending from other businesses.
The central bank last year scrapped the universal banking model and directed lenders in Africa's second biggest economy to sell their stakes in non-banking subsidiaries or adopt a holding company structure.
"What we are seeking is to transfer all our subsidiaries into an holding company; UBA Holdings Plc in line with regulatory directive and still sustain value for the shareholders," an official of the bank told Reuters.
Under the new structure, 40 percent of the present UBA group will be transferred to the holding company, which will be listed sometime next year, while the bank will retain 60 percent of its present form and operate as a subsidiary of the holding company.
The UBA banking group currently operates in 19 African countries with interest in real estate and asset management.