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GTBank to sell insurance stake

By on July 22, 2011

Nigeria’s Guaranty Trust Bank said on Thursday it plans to sell its 68 percent stake in Guaranty Trust Assurance for 11.91 billion naira ($78.3 million) to comply with new regulations issued by the central bank last year.

The bank said it hoped to complete the sale by the end of the third quarter. Any deal will be subject to regulatory approval.

Central Bank stopped issuing universal banking licences last October and directed lenders with non-banking subsidiaries to either divest or establish holding companies in a bid to avoid a repeat of 2009’s near collapse of several Nigerian banks.

GT Bank said it has agreed to sell its stake in the insurance firm to consortium made up of three private equity investors and three development finance institutions including Germany’s DEG and Netherland’s FMO.