By Peter OBIORA investadvocate

Sept 22 2010 15.01 GMT

 

Lagos—Nigeria’s Guaranty Trust Bank (GTBank) has notified The Nigerian Stock Exchange (NSE) that its Extra-Ordinary General Meeting (EGM) has been scheduled for Thursday October 21, 2010 at Jasmine Hall, Eko Hotel and Suites, Plot 1415, Adetokumbo Ademola Street, Victoria Island, Lagos Nigeria.

 

The Bank affirmed that the EGM has been scheduled for shareholders to consider and approve the divesting of its shareholding interests in its Non-Banking subsidiaries and the acquisition of the Bank’s shares by International Finance Corporation (IFC).

 

As earlier reported, Friday September 17 2010, the Bank had planned to divest its non-banking subsidiaries in order to comply with new regulations issued by Nigeria’s Apex Bank, the Central Bank of Nigeria (CBN) Wednesday September 08 2010.

At the EGM, it is expected that Directors of the Bank would recommend the sale of a 68 percent (68%) equity stake in Guaranty Trust Assurance Plc (GTA) its insurance arm to shareholders.

 

“The proposed divestment of the Banks shares in its non-banking subsidiaries is to ensure compliance with the new licensing regime unveiled by the Nigeria’s Apex Bank.

 

The new banking model requires banks to divest from all non-banking business.

 

“All the existing universal banks are required to prepare and submit to the CBN their plans on compliance with the new banking regime not later than 90 days from October 4, 2010.

 

Consequently, the CBN will discontinue the issuance of universal banking licenses; prohibit banks from undertaking non-banking activities while new licenses are to be issued to banks to perform the following types of businesses:

– Commercial banking (regional, national and international)

– Merchant banking

-specialized banking (microfinance, mortgage, non interest (regional and national) and development financial institutions)” the CBN said in a Statement.

 

In the same vein, GTBank on Monday July 26 2010 affirmed it was considering a deal from the IFC to buy up to $30 million worth of new shares via a Private Placement (PP).

 

The Bank had earlier given the idea a thought hence its convening of shareholders EGM for its Board of Director (BOD) to approve same.