“We Are Launching Soon” Zenith Bank To Change Name, Structure, Gives Reasons
- Zenith Bank is set to announce a new name amid plans to restructure the bank to a holding company
- The new structure will see Zenith Group PLC operating as a holding company with subsidiaries focused on banking, fintech among others
- The restructuring will see the bank delist from the Nigerian Exchange and London Exchange and relist with the new name
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Shareholders of Zenith Bank Plc have all agreed to restructure the bank's operations into a holding company.
The decision was reached during a court-ordered Extraordinary General Meeting (EGM) recently held virtually from Zenith Heights, Zenith Bank Plc, Victoria Island, Lagos.
Source: Getty Images
Zenith Bank to get a new name
During the meeting, the shareholders voted to transfer 31,396,493,787 ordinary shares of 50 Kobo each, held in Zenith Bank Plc's issued and paid-up share capital, to Zenith Bank Holding Company Plc (the HoldCo).
This transfer was in exchange for the allotment of 31,396,493,787 ordinary shares of 50 Kobo each in the share capital of the HoldCo, in the same proportion to their shareholding in the bank.
Additionally, the shareholders approved that each existing GDR Holder receive one new HoldCo GDR as consideration for each existing GDR held.
Furthermore, the shareholders approved the transfer of all shares held by the bank's nominees in Zenpay Limited, a direct subsidiary of the HoldCo, along with all associated rights and liabilities, to the HoldCo.
The Board of Directors was also authorised to delist the bank's shares and the Existing GDRs from the official lists of the Nigerian Exchange and the London Stock Exchange, respectively.
Additionally, the Board was authorised to re-register the bank as a private limited company under the CAMA Act 2020.
Zenith Bank bosses speak
During the Extraordinary General Meeting (EGM), Jim Ovia, CFR, the Founder and Chairman of Zenith Bank, expressed gratitude to the shareholders for their unwavering commitment, which has played a crucial role in the bank's exceptional performance over the years, the Sunnewsreports.
He expressed delight in witnessing the bank's transition to a holding company, a move anticipated to strategically position it to explore emerging opportunities in the Fintech space while enhancing its digital and retail banking initiatives.
During the EGM, Dr. Ebenezer Onyeagwu, the Group Managing Director/Chief Executive, praised the Founder and Chairman, Jim Ovia, CFR, for his crucial role in establishing an institution that has consistently been a trailblazer in the nation's financial services industry.
Punch reports that Onyeagwu also expressed optimism about the bank's growth trajectory as it transitions into a holding company structure in the coming years.
He said:
“The HoldCo structure presents an opportunity for us to unlock value for shareholders in terms of opportunity in other sectors beyond banking.
"The first part is Fintech, where we have already received the approval and the license from the Central Bank of Nigeria (CBN), which we are launching soon."
First Bank name change for subsidiary
In a related development, Legit.ng earlier also reported that First Bank has announced another name change for its subsidiary in Ghana as it seeks to create a uniform identity.
The bank has been working on creating brand clarity and consistency across all subsidiaries in recent months.
First Bank is one of Nigeria's oldest banks, with branches in several African and European countries.
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Source: Legit.ng
