Shareholders Approve GTB Restructuring Plan

Guaranty Trust Bank Plc  has received the approval of its shareholders on its plan to restructure into a Holding Company amid threat to block the lender’s plan by local automobile giant, Innoson Manufacturing Ltd

Nigeria’s indigenous automobile firm had commenced move to stop the bank from deregistering as a ‘Public Liability company’ over N32.8bn outstanding judgment debt.

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The local manufacturer had said in a document that it, “seeks an order restraining GTB from transmuting to a Private and a Financial Holding Company until GTB pays it over N32bn Judgement debt.”

Innoson also said it would block the Central Bank of Nigeria, Securities and Exchange Commission and the Nigerian Stock Exchange from approving the process, until the bank settles the debt.

But despite threat from Innoson, the tier-one lender has announced that its shareholders “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.”

The shareholders who passed the resolution on Friday according to the bank in a statement on Sunday seen by THE WHISTLER made the approval in exchange for the allotment of 29,431,179,224 ordinary shares of 50 kobo each to the shareholders.

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This is in the same proportion to the shares held in the existing structure in the bank credited as fully paid without any further act or deed, GTB said.

Managing Director, GTB Segun Agbaje, noted that the move was part of its effort to separate commercial banking business from other financial services businesses, based on the Central Bank of Nigeria’s regulations.

Agbaje who is also the Chief Executive Officer said “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 GTB would be migrated to Guaranty Trust Holdings via a share-for-share exchange between the shareholders of GTBank and GTHoldings.”

Commenting on the development, the President, Progressive Shareholders Association of Nigeria, Boniface Okezie, said, “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.

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“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.”

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