NGX lists Guaranty Trust Holding Company shares on trading platform

The Nigerian Exchange Group Plc (NGX Group) has listed Guaranty Trust Holding Company Plc (GT HoldCo) after delisting Guaranty Trust Bank.

The entire 29,431,179,224 issued shares of GTB were delisted on June 18, 2021, while GT Holdco’s entire issued share capital of 29,431,179,224 ordinary shares of 50 kobo each were listed on the bourse

In November 2020, GTB had obtained an approval-in-principle from the Central Bank of Nigeria (CBN) to commence a formal process of restructuring to a financial holding company (holdco)

The bank said the restructuring process would be implemented by an arrangement between the bank (GTB) and its shareholders in line with the Companies and Allied Matters Act (CAC).

It also obtained a “no-objection” from the Securities and Exchange Commission (SEC) in connection with the restructuring plan.

In a recent notification by NGX, the exchange said: “The delisting of GTB and listing of GT HoldCo on NGX is pursuant to the Scheme of Arrangement between Guaranty Trust Bank Plc and the holders of its fully paid ordinary shares of 50 Kobo each as approved by the Securities and Exchange Commission and sanctioned by the Court”.

The bank management had said GTB is adjusting its operating model and service offerings to remain relevant in the financial services sector and position the bank for sustainable long-term growth given the increasing evolution of businesses across the globe.

It explained that the new structure (holding company) will consist of banking subsidiaries and non-banking subsidiaries.

“The banking subsidiaries will include GTBank (Nigeria, West Africa & East Africa) and GTBank UK while the non-banking subsidiaries will be a payment company, an asset management company, and a pension business,” the bank management said.

GTB joins other banks that have also adopted the “holdco” structure such as Stanbic IBTC (2012), FBN Holdings (2012), First City Monument Bank (FCMB) Group (2013).