Zenith HoldCo secures shareholder approval
At a court-ordered Extraordinary General Meeting (EGM) held virtually on Friday at Zenith Bank’s Zenith Heights, Victoria Island, Lagos, Zenith Bank shareholders unanimously approved the bank’s restructuring into a holding company.
By virtue of a proposed arrangement dated 28 March 2024 between the Bank and holders of 50 fully paid ordinary shares of the Bank under section 715 of the Companies and Allied Matters Act 2020 (CAMA). , shareholders voted as follows: 50 within the share capital of Zenith Bank Plc in exchange for the transfer of 31,396,493,787 ordinary shares of Kobo held within the issued and paid-up share capital of Zenith Bank Plc to Zenith Bank Holding Company Plc (hereinafter referred to as HoldCo). 31,396,493,787 shares will be allotted for every 50 shares of Kobo's common stock. HoldCo is distributed in the same proportion as the bank's stock holdings.
Similarly, shareholders have authorized each existing GDR holder to receive one new HoldCo GDR in consideration for each existing GDR held. The shareholders also approved the transfer of all shares held by the bank nominees in Zenpay Limited, a direct subsidiary of HoldCo, to HoldCo, together with all rights and liabilities attached to such shares. The Board also authorized the Bank to delist the shares of the Bank and the existing GDR from the official lists of the Nigerian Exchange and the London Stock Exchange, respectively, and to re-register the Bank as a private limited company under the CAMA Act 2020. It was done.
In his remarks at the general meeting, Zenith Bank Founder and Chairman Jim Ovia thanked shareholders for their unwavering commitment to the bank's excellent performance over the years. He expressed his joy at seeing the bank transition to a holding company. This is expected to put it in a good position to explore new opportunities in the fintech space while strengthening its digital and retail banking efforts.
Also speaking during the EGM, Group Managing Director and Chief Executive Officer, Dr. Ebenezer Onyeagu, of CFR, who played a pivotal role in establishing an institution that has consistently been a pioneer in the US financial services industry. He praised founder and chairman Jim Ovia. . Dr. Onyeagwu expressed optimism about the Bank’s growth trajectory in the coming years as it moves to a holding company structure.
“The HoldCo structure provides us with the opportunity to create value for our shareholders in terms of opportunities in other sectors beyond banking. ) and will launch soon. It's going to focus on areas that we know no one has touched.
“So it's like we're finding a wide open space where we can start a business, and with HoldCo, that means we have the opportunity to diversify our investments. We can start looking at other vertical businesses that were limited by the types of authorizations we have. So this also presents a huge opportunity for us to have a broader perspective and scope in terms of what we can do. , it also inspires us to think about opportunities beyond Africa. We will focus on key business areas that have the potential to create value for our shareholders.”
Onyeagwu said the bank is on track to obtain the necessary shareholder approval for its recapitalization plan at the next annual general meeting (AGM) to begin capital raising efforts in line with the CBN directive. . He expressed confidence in the bank's ability to raise mandated capital, saying Zenith already has a strong capital base and is expected to raise the least amount among its peers.
Source: guardian.ng