Access Bank Plc has announced the restructuring of the group into a non-operating financial holding company structure.
This was contained in the bank scheme of arrangement document released on the Nigerian Exchange (NGX) Limited, yesterday.
The chairman of Access Bank, Dr. Ajoritsedere Awosika, stated that, the holding structure is expected to hold the banking group, that is, Access Bank and its banking subsidiaries.
Awosika stated that the restructuring is proposed to be implemented through a Scheme of Arrangements, pursuant to the provisions of Section 715 of CAMA and the SEC Rules and Regulations, saying, if the restructure is approved, the restructured group will have a structure like that of some major global financial institutions, including those that Access Bank considers to be its peers and competitors.
According to the chairman, the board expects that the restructured group will have greater flexibility to adapt to future business opportunities, market and regulatory changes than is currently the case.
Also confirming receipt of the requisite Approval-In-Principle from the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) in respect of the scheme, the chairman added that the scheme will be presented to shareholders for consideration and approval at a Court-Ordered Meeting to be held on December 16, 2021.
She pointed out that, following the restructure, shareholders will continue to hold the shares in the Holdco in the same proportion as their current holdings in the bank and that the bank’s shares being held wholly by the Holdco, which will be a regulated entity for CBN purposes.
According to Awosika, the HoldCo structure will enable Access Bank to diversify its business portfolios into new areas within the financial service industry that are permissible by the CBN HoldCo regulation.
She explained that the Board considers the restructure to be the most appropriate approach to create greater strategic flexibility and diversification of the group’s revenues.
She added that the board considers the terms of the scheme to be fair, reasonable and in the best interests of the shareholders, recommending the shareholders to vote.