https://seekingalpha.com/article/4780400-bancolombia-reorganization-may-lead-to-re-ratingThe reorganization:
To put is simply, the reorganization is a separation of ownership. Currently, Bancolombia (NYSE:CIB) (the bank) is the legal entity holding shares in the Central American banks and the group’s digital initiatives (of which the Nequi App is the star product). These entities will be separated legally and will be held together by a single holding company.
Post reorganization, us shareholders will no longer own shares in the colombian bank. Although the ticker won’t change, “CIB” will represent shares of a newly established holding company, Grupo Cibest. The group will directly own Bancolombia, and also each foreign bank, Banistmo (Panama), Banco Agricola (El Salvador) and BAM (Guatemala). A fifth operating group will be populated with the digital initiatives and platforms, which mainly relate to mobile banking and payments in Colombia.
In short, ownership of the same assets and liabilities, now held through a single holding vehicle which is not an operating banking entity, nor regulated as such.
