A. M. 
Just a few months away from celebrating important milestones such as its 150th anniversary as the bank of colombians and 30 years as the first Colombian company to list its ADR (American Depositary Receipts) on the New York Stock Exchange, Bancolombia has decided to evolve ITS corporate structure by creating a holding company – Grupo Cibest S.A. – which will be the parent company of all the financial and non-financial businesses of the Grupo Bancolombia entities, including Bancolombia S.A., in the countries where it has a presence. The evolution is subject to approval by regulators and its General Shareholders’ Meeting.
Current Bancolombia shareholders will receive one Grupo Cibest share for each share they hold in Grupo Bancolombia. Grupo Cibest will issue to Bancolombia shareholders the same class of shares (common shares and shares with preferential dividends and no voting rights), and with the same rights that said shareholders have in Bancolombia on the date of completion of the transactions by which the evolution of the corporate structure will be implemented.
The common shares and the shares with a preferred dividend and without voting rights issued by Grupo Cibest will be listed on the Colombian Stock Exchange (“BVC”), and the shares with a preferred dividend and without voting rights will additionally be listed, through American Depositary Receipts (ADR) on the New York Stock Exchange (NYSE), under the same conditions in which they are listed on the date of completion of the transactions by which the evolution of the corporate structure will be implemented.
What is the context of this announcement?
Juan Carlos Mora (JCM): This is another step in our history of evolution and growth. Today we are a financial group with more than 34,000 employees and 32 million clients, committed to the purpose of promoting sustainable development to achieve the well-being of all.
150 years ago we were born as just a bank. Today we have many other companies, and thanks to this we support Colombia, Panama and Central America with solutions that allow us to consolidate a better future, create connections and continue telling a true story of value creation. We dream of continuing to build an organization that is always evolving: the creation of this holding company will be one more step to bring us closer to that great vision of generating value beyond our borders.
In addition to separating the roles that Bancolombia currently plays as a credit institution and holding company, the Grupo Cibest will have the mission of continuing to consolidate our vision of the future and corporate development. It is a project to enhance the value for our relationship groups, continue to support our clients with comprehensive solutions and attract investors to a solid financial business, in which we will continue to promote trust as a main asset.
Let’s start with something basic: what is a holding company?
JCM: A holding company is a parent company that manages and controls a group of companies, and is responsible for receiving their returns and distributing value to shareholders.
Why is a holding company the key to this process of corporate evolution at Bancolombia?
JCM: This is a process that has taken several years of discussion, disciplined internal work, and the result of the transformation we have experienced in a business that is becoming increasingly stronger with new companies that, as Colombians can see, transcend the financial sphere.
In simpler terms, today Bancolombia plays two roles: it carries out activities typical of a bank in Colombia and serves as the parent company for financial entities in Colombia and Central America, as well as for companies in the real sector that complement our financial services and products. With this transformation, Bancolombia will continue to operate as the bank we all know, and Grupo Cibest will be the parent company for the financial and non-financial entities that today make up Grupo Bancolombia.
It is a strategic decision that puts us on par with other financial groups in Colombia and around the world, in which the parent company, or holding company, is separate from the other operating companies or corporations. With this in mind, we will have the possibility of expanding our investment plans in line with our purpose, continuing to provide comprehensive solutions to our clients and having alternatives to provide greater value to our shareholders.
