Guaranty Trust Holding Company (GTCO) is on track to take over the operation of Investment One Funds Management from its parent company, Investment One Financial Services Limited, after receiving all regulatory approvals for the acquisition and launch of the company.
The Lagos-based financial services group led by Nigerian multimillionaire banker Segun Agbaje, on Mon., Feb. 7, announced the purchase of a 100-percent stake in Investment One Funds Management.
The transaction, which marks the lender’s entry into the asset management business, was completed nearly eight months after it transitioned into a holding company structure in an attempt to create an operating model that will profitably grow its commercial banking operations and non-banking financial services.
The transaction, which aligns with the bank’s aim of becoming a pan-African company, enables the group to refocus its investment management and investment banking services to its individual and corporate customers.
The move will also allow its retail customers in the pension and mutual fund businesses to use the tier-1 lender’s network and service platforms to manage their pension and mutual funds.
While commenting on the transaction, Agbaje, group CEO of GTCO, said the financial services group’s board and management are excited about its expansion into the wealth management space because it will provide the group with the opportunity to become a one-stop-shop for financial services and products that will empower its customers throughout their lives.
“As a dominant leader in financial services, we are well-positioned to add significant value to the asset management business in Nigeria and compete favorably with the largest wealth managers in the areas of disclosure, corporate governance, and regulatory compliance,” he added.
Despite the fact that news of the acquisition was dominating the mainstream media, investors on the Nigerian Exchange sold down shares in the leading lender.
Shares in the bank closed at N27.5 ($0.066) at the close of trading on the local exchange, 55 basis points lower than its opening price on the exchange this morning.
Its market capitalization is currently valued at N804.9 billion ($1.9 billion), making it the Nigerian Exchange’s second-most capitalized financial services group.
