The shareholders of Stanbic IBTC Bank Plc have approved the resolution on creation of a holding company for the bank and its other non-banking businesses.

The holding company, Stanbic IBTC Holdings Plc, was created in line with the revised regulatory framework by the Central Bank of Nigeria, which requires banks to divest from non-core banking businesses or adopt a holding structure.

A statement by the bank noted that the resolution was unanimously endorsed by 99.06 per cent of its shareholders at the court-ordered Extra-Ordinary General Meeting in Abuja on Thursday.

According to the statement, the Chairman, Stanbic IBTC Group, Mr. Atedo Peterside, emphasised that the holding company structure would consolidate on the strengths and expertise of each business unit to enhance the entire group’s ability to drive growth into the future.

He added that the new structure would accrue significant benefits to shareholders from the entire business, while Stanbic IBTC Bank’s customers would not be exposed to the risks associated with the non-banking activities of the other businesses of the group.

“A major reason for adopting the new structure is to consolidate on our goal of building Nigeria’s leading end-to-end financial services organisation, leveraging on our competitive advantages in the various business segments, supported by the financial resources and global network of Standard Bank Group, to which Stanbic IBTC belongs,” Peterside was quoted as saying.

The statement added that other resolutions passed at the Extra-Ordinary Meeting was the reduction of the bank’s share capital by a total of N7.5bn as a result of cancellation of 15 billion out of the 18.75 billion ordinary shares.

It said, “The holding company will have 10 billion issued and fully paid up shares of 50 kobo each. Following the share reduction, the number of shares held by a shareholder will accordingly change as four out of every five shares will be cancelled.

“The excess capital from the share cancellation will be returned to shareholders as cash, with each shareholder being paid 50 kobo for each share cancelled and the remaining shares converted to shares in the holding company at a ratio of one to 2.67.”

Source: Punch/Udeme Ekwere