The Chairman of Access Bank Plc has issued a letter to all shareholders of Access Bank informing them about the restructuring of the Bank’s Group into a non-operating financial holding company structure. The holding structure is expected to hold the banking group that is, Access Bank and its banking subsidiaries.
The letter which was signed by the bank’s Chairman, Dr Ajoritsedere Awosika and filed with the exchange on Thursday, December 9, 2022, 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. Furthermore, 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 CBN and 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 at Access Bank Plc’s Head Office on December 16, 2021.
What this means for shareholders
According to the notice, 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 the Bank’s shares being held wholly by the Holdco, which will be a regulated entity for CBN purposes.
The document states that “the Bank will continue to be subject to the full suite of CBN banking regulations and, in all other material respects. The Banking Subsidiaries will continue to be subject to the oversight of the respective prudential regulatory authorities in their jurisdictions. The Group’s firm-wide risk management framework will continue to apply across the entire restructured group.”