NGX Suspends Trading On GTBank Shares

The Nigerian Exchange Limited has suspended trading on the shares of Guaranty Trust Bank Plc.

The suspension follows the bank’s plans to operate as a financial holding company (HoldCo) with the name ‘Guaranty Trust Holding Company Plc ‘ from 2021.

As a holding company, the bank will be a subsidiary of the new structure and will lead to the delisting of the GTBank from the bourse and the listing of GT Holdco on the bourse.

The suspension which took effect Friday was disclosed by the Exchange.

“The suspension is necessary to prevent trading in the shares of the Bank in preparation for the eventual delisting of Guaranty Trust Bank Plc from the Daily Official List of the Nigerian Exchange Limited (NGX) and listing of the Holding Company, Guaranty Trust Holding Company Plc on NGX,” said NGX.

The company had on November 6 last year obtained an authorisation from a Federal High Court sitting in Lagos.

Shareholders met last year to discuss on 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 GT Holding Company Plc.

This was in exchange for the allotment of 29,431,179,224 ordinary shares of 50 Kobo each in the share capital of the holding Company to the shareholders in the same proportion to their shareholding in the bank.

Segun Agbaje, Managing Director/CEO, GTBank Plc, believes that the HoldCo would perform better.

The Central Bank of Nigeria had directed the separation of commercial banking business from other financial services businesses by banks.