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Nigeria’s most profitable lender Zenith Bank, led by the country’s richest banker Jim Ovia, secured overwhelming shareholder approval to transition into a holding company structure. The decision, reached during a court-ordered Extraordinary General Meeting (EGM) held virtually over the weekend, marks a significant step in Zenith Bank’s evolution.
The approval, compliant with a Scheme of Arrangement established in March, paves the way for the transfer of 31.396 billion ordinary shares from Zenith Bank Plc to a newly formed Zenith Bank Holding Company Plc (HoldCo). Shareholders will receive equivalent shares in the HoldCo while existing Global Depositary Receipt (GDR) holders will get one new HoldCo GDR per existing GDR.
The restructuring extends beyond share conversion. Shareholders also sanctioned the transfer of all shares held by the Bank in its subsidiary, Zenpay Limited, to the HoldCo. Additionally, the Board received authorization to delist Zenith Bank shares from the Nigerian Exchange and existing GDRs from the London Stock Exchange. The Bank will subsequently re-register as a private limited company under Nigeria’s Companies and Allied Matters Act (CAMA) 2020.
Zenith Bank embraces fintech after HoldCo approval
In response to the milestone, Jim Ovia, the founder and chairman of Zenith Bank, expressed his satisfaction witnessing the Bank’s transition to a holding company. He anticipates this move will position Zenith Bank advantageously to leverage emerging opportunities in the Fintech sector while strengthening its digital and retail banking initiatives.
Ebenezer Onyeagwu, the outgoing group managing director and CEO of Zenith Bank commended Jim Ovia for his instrumental role in establishing a pioneering institution within Nigeria’s financial services landscape. Onyeagwu expressed optimism regarding Zenith Bank’s future under the holding company structure, emphasizing the potential to unlock shareholder value through ventures exceeding traditional banking.
“The HoldCo structure presents an exciting opportunity to capitalize on sectors like fintech,” Onyeagwu said. “Zenith Bank has already secured the necessary approvals and licenses from the Central Bank of Nigeria (CBN) for our imminent launch into this space. Our focus will be on areas yet unaddressed by current players, fostering further innovation and propelling growth for Zenith Bank and its stakeholders.”
This strategic shift positions Zenith Bank to adapt and thrive in the ever-evolving financial services ecosystem, solidifying its position as a leader in innovation and value creation.
Zenith Bank sees stellar profit growth
Founded in 1990 by Jim Ovia, Nigeria’s richest banker, Zenith Bank has grown into a leading financial institution in Nigeria and Anglophone West Africa. Under Ovia’s leadership, Zenith Bank has expanded its operations to include Gambia, Ghana, Sierra Leone, the United Kingdom, UAE, and China, all while delivering value to shareholders.
Zenith Bank’s financial performance has been nothing short of stellar. Under Ovia’s guidance, the bank achieved a remarkable 202.3 percent profit surge in 2023, reaching a record N676.91 billion ($522.03 million). This unprecedented growth, fueled by robust interest income and foreign exchange gains, cements Zenith Bank’s position as Nigeria’s most profitable lender.
