Home Industry Banking & Finance GTBank Receives CBN’s Approval to Restructure into a Holding Company
Banking & Finance - Companies - November 5, 2020

GTBank Receives CBN’s Approval to Restructure into a Holding Company

Guaranty Trust Bank Plc announced yesterday that it has received an “approval-in-principle” from the Central Bank of Nigeria (CBN) to begin the process of restructuring into a financial holding company.

According to a corporate disclosure that was seen by Business Elites Africa, the process will be formalised and implemented through a scheme of arrangement between Guaranty Trust Bank Plc and its shareholders, in adherence to the Companies and Allied Matters Act.

“Under the restructuring, it is proposed that the issued shares in the Bank be exchanged on a one-for-one basis for the shares in a financial holding company. The Bank’s existing Global Depository 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,” the statement went further to disclose.

GTBank also mentioned in the statement that the Securities and Exchange Commission (SEC) has given no objection to the proposed scheme.

The tier-1 Nigerian bank said it decided to embark upon the restructuring process after a strategic evaluation the Nigerian financial industry. A holding company structure will allow the bank much more flexibility to expand its scope of operation and by so doing, better position its self for profitability.


It should be recalled that a number of other leading Nigerian banks recently got the approval of Nigeria’s apex bank to also restructure into a holding company. The likes of Access Bank Plc and Sterling Bank Plc are among the growing list of banks to join already existing financial holding companies like FBN Holdings Plc, Stanbic IBTC Holdings Plc, and FCMB Group.

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