Shareholders of Guaranty Trust Bank (GTB) Plc have granted approval for the bank to transform to a holding company (Holdco).
The bank on Sunday, in a statement titled, ‘Shareholders Approve GTBank’s Planned Holdco Structure’, said the investors gave their approval at a court-ordered meeting on Friday.
The approval was given in exchange for the allotment of 29,431,179,224 ordinary shares of 50 kobo each to the shareholders in the same quantity to their shareholding in the bank credited as fully paid without any further act or deed.
With the development, assets and shares of GTB and all its subsidiaries will be managed by the new parent company called a holding company.
The GTHoldings will perform oversight functions on the companies under it and oversee their management decisions.
Founder of Independent Shareholders Association of Nigeria, Sunny Nwosu said shareholders were satisfied with the arrangement because it was done without difficulties that often come from share reconstruction.
“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,” he said.
Boniface Okezie, President of Progressive Shareholders Association of Nigeria asserted that “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.”