On the 14th of July 2021, an announcement was made by the Guaranty Trust Bank (GTB) that it was transitioning from GTBank to a Financial Holding Company, Guaranty Trust Holding Company (GTCO). An excerpt from the official statement released by the orange 🍊 styled Bank reads:
"The Holding Company Structure will enable our organization to operate a corporate centre known as Guaranty Trust Holding Company Plc that will be responsible for setting strategic direction, providing group-wide oversight, and aligning corporate governance and management roles for all our businesses which will extend beyond banking to include other financial services."
From the above statement, the first take away is that GTCO will now be the mother of GTBank directing and overseeing the overall running of the bank 🏦.
The second point noted above in the statement also points to the fact that the new company will now diversify its services. That is, stretching further than banking services.
The newly established company also went ahead to name its new Board of Directors as well as made changes to the Board of its banking subsidiary, Guaranty Trust Bank Limited. The company also disclosed that all the appointments have already been approved by the Central Bank of Nigeria and disclosed to the Securities and Exchange Commission and the Nigerian Exchange Group.
The new company Guaranty Trust Holding Company Plc (“GTCO Plc”), will be governed by a Board of Directors comprising;
While the new company's banking subsidiary, Guaranty Trust Bank Limited will now be governed by a Board of Directors comprising;
So What Is Actually The Difference Between GTBank and GTCO?
GTbank which is into pure banking services is now a subsidiary of Guaranty Trust Holding Company PLC (GTCO) which is now the parent company directing and overseeing the affairs of all its subsidiaries including the GTBank.
The New Company GTCO Has Now Been Listed On The Nigerian Stock Exchange
See confirmation in the excerpt from the email I got from GTCO 3 day ago....
We have some very exciting news to share with you.
We are now a fully-fledged Financial Services Group. Guaranty Trust Holding Company Plc (“GTCO Plc”) has been listed on the Nigerian Exchange (NGX) Limited and the London Stock Exchange, replacing Guaranty Trust Bank Plc. GTCO Plc will operate as the parent company of all Guaranty Trust banking businesses across Africa and the United Kingdom as well as other non-banking businesses which we will establish following our transition.
This development is very exciting to us because transitioning to a Holding Company Structure enables us to create more value for you, deliver better results for all our stakeholders and further enrich lives in the communities wherein we operate."
Why Is GTbank Transitioning To A Holding Company Structure In The First Place?
The company revealed that they want to offer more than just financial services moving forward. They also added that it is part of their long-term strategy to create and drive innovative financial solutions that go beyond banking. So in order to achieve this new objective, they were legally required to adopt a holding company structure, which they've now completed.
How Will This Decision Affect Existing Customers And Investors?
GTCO also outlined some points worthy of note as to how this decision affects existing customers and investors of the Guaranty Trust Bank 🏦 (GTB). See some of the outlined details I received from them in the mail below:
The bank 🏦 revealed that their transition to a holding company structure will have no effect on the status of the customers of Guaranty Trust Bank Nigeria or any Guaranty Trust Bank subsidiary across Africa and the United Kingdom. The transition will also not affect their banking operations in any way. So in terms of banking services, everything remains the same.
How This Transition Also Benefit The Customers?
The bank stated that as a Holding Company, GTCO Plc will set up new businesses that will offer their customers more value beyond banking.
What Actions Are Required From The Customers?
According to GTCO, no action is required by the customers. All banking facilities still remain accessible to customers just like in the past.
How Will This Transition Affect The Rights And Ownership Of Existing Shareholders Of Guaranty Trust Bank 🏦 PLC?
The company revealed that the transition will result in no specific change to the rights and ownership of existing shareholders of Guaranty Trust Bank Plc. Your shareholding is simply being migrated to Guaranty Trust Holding Company Plc in a 1:1 share transfer.
* Shareholders with CSCS accounts will have their shareholdings in Guaranty Trust Bank Plc replaced with that of Guaranty Trust Holding Company Plc, while those without CSCS accounts will be sent the physical share certificates of Guaranty Trust Holding Company Plc in replacement of share certificates of Guaranty Trust Bank Plc to the address in the database of the registrar.
* Shareholders with shares partially held at the CSCS and physically held will have their entire shares updated in their CSCS account.
Will This Change Affect The Value Of Your Shares With GTBank?
No. The value of your shareholdings remains exactly what it would have been if it were under Guaranty Trust Bank Plc.
Would You Need To Complete Any Form To Request For the Guaranty Trust Holding Company Share Certificate?
No. You do not need to complete any form. Your share certificate will be sent to you.
Will You Still Receive Your Dividends?
Yes. You will continue to receive your dividends and all benefits as previously enjoyed.
What Will Happen To The Existing Share Certificates In Your Custody?
New share certificates with the new name – Guaranty Trust Holding Company Plc, will be reissued to you. As a result, all existing share certificates in your custody will automatically become void.
Are You Required To Complete Another Bank Mandate Form For the Direct Crediting Of Dividends Into Your Bank Account After The Change Of Name?
No. You do not need to complete another bank mandate form as the restructuring will not affect your mandate instructions.
What If You Have Misplaced Your Existing Share Certificate?
Nothing to worry about as a new share certificate with the new name – Guaranty Trust Holding Company Plc will be issued and sent to you.
Are You Going To Get Issued Another Share Certificate For The Number Of Holdings You Have?
Yes. You will be issued a new share certificate for the number of units you have; however, for the shareholders whose holdings are already with the CSCS, the units will be sent to the CSCS instead.
What Will Happen To Your Existing Shares With The Central Securities Clearing System (CSCS)?
Your existing shares with the CSCS will remain the same but this time, under a new name – Guaranty Trust Holding Company Plc.
Are You Going To Be Able To Trade Your Existing Guaranty Trust Bank Shares After This Restructuring?
Once Guaranty Trust Bank Plc is delisted on the stock exchange, you will only be able to trade with Guaranty Trust Holding Company Plc shares.
What Is Going To Happen To Your Unclaimed Dividends Held Under Guaranty Trust Bank Plc?
You can still claim your dividends by requesting a re-issuance or revalidation. You will need to contact DataMax Registrars Limited for further information.
Is Your Shareholding Going To Be Increased Or Reduced In Anyway?
No. Your shareholdings remain the same.
What Effect Will The Change In Legal Structure Have On The Value Of Shareholders’ Investment?
None. The market capitalization of Guaranty Trust Bank Plc will not be adversely affected by the change in the legal structure.
Under Which Sector On The Nigerian Exchange Limited Will The Holding Company Be Listed?
Guaranty Trust Holding Company Plc will be listed on The NGX under the “other financial services” sector as a non-operating holding company.
You can access more info about GTCO Here
Will GTBank Be Changing It's Name And Logo?
The company revealed that GTBank will not change its name but will change it's logo to now bear GTCO. In a nutshell, the name of the bank 🏦 is GTBank while its logo is the same with its parent company GTCO. See GTbank new logo below: