First Citizens Bank to restructure

First Citizens Bank Ltd has announced its intention to restructure the First Citizens Group.

The decision is pending approval at the annual meeting of shareholders on June 30.

In a notice in the newspaper on Tuesday, the bank said the restructuring 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.”

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.”

It said 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.

Once approved next Wednesday, it said, the first phase of the change will come into effect from October 1.

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.”

It said it anticipates that there will be no restriction on trading on shares.