NGX, LSE suspends trading on GTBank shares to allow bank restructure into HoldCo

According to a disclosure last Friday from relevant sources, the trading of Guaranty Trust Bank shares on the Nigerian Exchange has been put on hold effective from Friday, 18th of June, 2021 following the plan by the bank to officially delist from the bourse and the listing of the Holding Company, Guaranty Trust Holding Company Plc on the Nigerian Exchange Group and London Stock exchange concurrently as a private limited liability company under the relevant provisions of Nigeria’s corporate legislation.

The suspension also means that trading licence holders and the investing public won’t have access to the shares of the banking institution pending the completion of the restructuring process by the top Nigerian lender in what includes the official listing of the holding company structure of the bank.

According to the disclosure made available to business a.m, “Trading License Holders and the investing public are hereby notified that trading in the shares of Guaranty Trust Bank Plc (the Bank) was suspended today, Friday, 18 June 2021.

“The suspension is necessary to prevent trading in the shares of the Bank in preparation for the eventual delisting of Guaranty Trust Bank Plc from the Daily Official List of the Nigerian Exchange Limited (NGX) and listing of the Holding Company, Guaranty Trust Holding Company Plc on NGX. This is for your information and necessary action,” it stated.

However, it can be recalled that in 2020, Guaranty Trust Bank announced its receipt of the Central Bank of Nigeria’s approval-in-principle and has also received the “Noobjection” of the Securities and Exchange Commission (SEC) in connection with the proposed scheme to proceed with the formal process of the banks restructuring into a financial holding company (HoldCo). According to the bank in its filing to the local bourse, the restructuring will be implemented through a scheme of arrangement between the bank and its shareholders. Under the scheme, issued shares in the bank will be exchanged on a one-forone basis for shares in the Holdco. The bank’s existing GDRs will also be swapped on a similar one-for-one basis for GDRs in the Holdco.