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4. Foster innovation
Because operating companies are separate entities, there is less risk in investing in start-ups or other ventures that seem risky. For example, when Google restructured and formed Alphabet as its holding company, one of the reasons cited for doing so was that Google shareholders were concerned about the company's investments in areas like robotics, Google glass, life sciences, and medical research. By restructuring, those investments were separated from its core and profitable functions such as its search engine and YouTube businesses.
A holding company can own businesses in a variety of unrelated industries. Each subsidiary has its own management to run the day-to-day operations.
5. Day-to-day management not required
With the Bank's recent entry into numerous African markets, the hope is that these transactions will result in a more connected African banking network that will enable us deliver our mission to be Africa's Gateway to the World thus enhancing our value proposition to stakeholders, including customers and employees.
In case you missed it, you can find a copy of the announcement on the website. Further details of the proposed transactions will be shared as we continue on this journey.
PAGE 10 INSIDE ACCESS | OCTOBER 2020 2ND EDITION
