First Citizens to restructure group and meet international best practice

First Citizens to restructure group and meet international best practice

First Citizens is trying to get the group in line with international best practice and has set out plans to restructure the First Citizens Group.

The bank, via a notice today, said the restructuring plan was a result of “the substantial growth of the group both locally and regionally over the years.

“It involves a new legal arrangement of the companies within the First Citizens Group.”

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It noted that other financial institutions locally have gone through a restructuring process and First Citizens is trying to get the group in line with international best practice.

“The current corporate legal structure exposes the bank’s capital to risk from subsidiaries in Trinidad and Tobago and overseas. As the group expands its geographic footprint, this risk would require appropriate management.”

The bank would become a wholly-owned subsidiary of the new group holding company and all assets and undertakings of the subsidiaries will be transferred to it.

The decision is pending approval at the annual meeting of shareholders next Wednesday, 30th June, following which the first phase of the change will come into effect from October 1st.

The current directors of the bank will maintain those roles in the new company, who will then nominate directors to be appointed to the bank.

“The bank will continue to operate as it does at present as a licensed commercial bank with the Central Bank as a financial institution.

“The bank will no longer be a publicly listed company on the TT Stock Exchange. It will continue to be registered with the TT Securities and Exchange Commission.”

It assured its shareholders they would have the same percentage of shares in the new company and they will also have the same voting rights.

“We do not anticipate that the proposed corporate restructure would have a negative impact on the value of your shares.

“The proposed corporate restructure would have no impact on shareholders’ dividends.”

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