Zenith Bank Plc said it
has obtained regulatory approval from the Central Bank of Nigeria to operate as
a holding company.
Consequently, the lender
said the non-operating Financial Holding Company structure approved by the apex
bank will be ‘Zenith Holdco Plc.’ Zenith Bank made the disclosure on Friday in
a filing on the Nigerian Stock Exchange.
The first tier bank said
in the document titled, ‘Central Bank Of Nigeria (CBN) Grants
Approval-In-Principle (AIP) For Zenith Holdco Plc (In-Formation)’, that Jim
Ovia will also double as the new Chairman of the holding company.
But Ovia will exit as
Chairman of Zenith Bank after the commencement of Zenith Holdco Plc.
The bank said, “This is
to inform the Nigerian Exchange Limited (NGX), shareholders and the general
public that the CBN has granted Approval-In-Principle for Zenith Bank Plc to
operate a non-operating Financial Holding Company structure.
“Furthermore, the CBN approved Mr. Jim Ovia as the Chairman of
Zenith Holdco Plc (in-formation) and for Mr. Jim Ovia to also continue as the
Chairman of Zenith Bank Plc until the commencement of Zenith Holdco Plc.”
The CBN had in 2010
introduced a banking model that requires banking groups with non-core banking
activities to incorporate a holding company structure.
The model allows
banks/banking groups to retain non-core banking business by evolving into a
non-operating Holding Company structure.
Under the structure, the
Holdco is expected to hold equity investment in banks and non-core banking
businesses in a subsidiary arrangement.
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