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Sunday, December 06, 2020 / 01.50PM / By GTBank / Header Image Credit: GTBank
The shareholders of GT Bank 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, 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. This was done in
exchange for the allotment of 29,431,179,224 ordinary shares of 50 kobo each to
the shareholders in the same proportion to their shareholding in the bank
credited as fully paid without any further act or deed.
Expressing his member's excitement over the planned
restructuring, the founder, Independent Shareholders Association of Nigeria
(ISAN), Sir Sunny Nwosu, explained that the shareholders are excited because
the arrangement the bank has put in place is devoid of complexities usually
known as share reconstruction.
According to him, the bank has performed well under
the leadership of the Chairperson and the Managing Director and thus projected
that the HoldCo would perform better if the duo is still in charge of the new
brand.
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, the President,
Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, noted that, "GT Bank 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".
"The arrangement where all existing shares of the bank
would be transferred entirely to the Holdco in the name of the beneficial
owners is good, while the same number of units and percentage would be held in
the new entity, is commendable", he added.
Speaking at the court-ordered meeting, on Friday,
Managing Director/CEO, GT Bank Plc, Mr. Segun Agbaje, explained that in line
with the Central Bank of Nigeria's (CBN's) regulations, which require the
separation of commercial banking business from other financial services
businesses, the bank is adopting a HoldCo structure.
He said, "I am delighted over the approval by
shareholders for the holding company and I assure the investors of a more
rewarding future. The bank will not embark on any share reconstruction as the
same number of shares they have with the bank will be maintained.
"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 to achieve the aspiration to be the
dominant financial services group.
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