Towards Corporate Makeover, NGX Suspends GTBank Shares, But Innoson’s Shadows Abide

Shares of Guaranty Trust Bank, GTBank Plc have been placed on suspension pending the conversion of the bank into a holding company.

The move is in line with recent corporate adjustments that have been seen some banks adopt holding companies over their core banking and non banking activities.

Among the banks that have followed the path are First Bank, FCMB among others.

The suspension on the trading of the shares of GTBank Plc affirmed by the Nigerian Exchange (NGX) Limited last Friday.

The NGX said the suspension would allow the delisting of the shares and the eventual listing of the holding company to be known as Guaranty Trust Holding Company Plc on NGX.

The conversion had been approved by the shareholders under a share arrangement scheme that would see GTBank Plc shares go for one for one with the holding company.

“Our transition into a holdco is a necessary step to future-proofing our leadership position, sustainably growing our earnings and achieving our long-term goal of be-coming one of the top five financial institutions in Africa. It is also a critical part of our response to the seismic shifts in customer expectations and changes in business models,” Agbaje had said.

According to him the holding company will give the new company the competitive edge in creating value in sectors outside financial services.

“We will create a new payments business to deliver the innovative solutions that will deepen and extend digital financial services across Africa. We also believe that we are in a better position to drive an asset management business and a pension fund business, given our strong retail base and digital-first approach to financial services, which we have honed over the past decade. Taken together, our entry into these new growth areas will allow us maximize our potential in a way that banks were restricted from and enhance the value we create as a platform for enriching lives,” he said.

 GreenWhiteGreen GWG reports that the move was, however, shadowed with conspiracy theories on the claim that it was a move by GTBank to legally escape issues it had with a former customer, Innoson Motors.

Innoson Motors was entangled with issues with GTBank over alleged charges for which the indigenous motor company went to court and got victories over the bank.

Innoson Motors had applied to stop the move but the apparent determination of the to forge ahead would indicate the failure of the moves.

GT Bank commenced operations as a privately owned bank in 1991 and in 1996 was converted into a public limited company. The bank in 2001 conducted its first Initial Public Offering, IPO through which it raised N2.6 billion and in 2004 raised a further N11 billion.

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