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Saturday, November 27, 2021

Access Bank to hold court-ordered shareholders meeting on Holdco

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By Samuel Bankole

Access Bank Plc plans to hold a court ordered shareholders’ meeting on Friday to approve the transfer of its whole shares to a newly formed Access Holdings Plc , the Holdco, in its quest to consolidate its operations in a single entity.

In a regulatory filing with the Nigerian Exchange Limited (NGX) on Monday, the lender said the court ordered meeting will accords the shareholders oportunity to vote on the Scheme of Arrangement, which will see them transfering their shareholdings from the lender to the holding company.

The shareholders are also expected to vote for an approval for the “Board of Directors of the Bank be and is hereby authorized to take all necessary action to delist the shares of the Bank from the official list of the Nigerian Exchange Limited.”

“The said Scheme will be subject to the subsequent sanction of the Court and delivery of a certified true copy of the Order of the Court sanctioning the Scheme to the Corporate Affairs Commission,” the lender said in the communication with the regulator.

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The court ordered meeting of shareholders is the first step toward consolidating the lender assets and its subsidiaries into an holding company, which has become the trend in the financial industry.

With the approval of shareholder, the bank will be delisted from the main board of the NGX and will be replaced by the Holdco.

The Holdco is expected to have its own board of directors and management seperate from the bank itself, while the holding company will be an unbrella institions for the entire operations of the lender and its other subsidiaries firms.

It would be recalled that GTBank, recently consolidated its holding in a GTCO, a Holdco and appointed seperate chief executive for the Holdco and the bank. Similar practice are seen in First Bank Limited holding Company, FBNH Plc, FCMB Group and other financial institutions which have adopted the Holdco strategy to consolidate.

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