Our legal name is Grupo Financiero Galicia S.A. We are a financial services holding company that was incorporated as a "sociedad anónima" ("a stock corporation") on September 14, 1999, under the laws of Argentina.
Grupo Financiero Galicia was formed to hold all of the shares of the capital stock of Banco Galicia held by members of the Escasany, Ayerza and Braun families (“the controlling families”). Its initial nominal capital amounted to 24,000 common shares, 12,516 of which were designated as class A ordinary (common) shares and 11,484 of which were designated as class B ordinary (common) shares. Following Grupo Financiero Galicia's formation, the holding companies that held the shares in Banco Galicia on behalf of the controlling families were merged into Grupo Financiero Galicia. Following the merger, Grupo Financiero Galicia held 46.34% of the outstanding shares of Banco Galicia. In addition, and due to the merger, Grupo Financiero Galicia's capital increased from 24,000 to 543,000,000 common shares, 281,221,650 of which were designated as class A shares and 261,778,350 of which were designated as class B shares. Following this capital increase, all of our class A shares were held by EBA Holding S.A., an Argentine corporation that is 100% owned by our controlling shareholders, and our class B shares were held directly by our controlling shareholders in an amount equal to their ownership interests in the holding companies that were merged into Grupo Financiero Galicia.
On May 16, 2000, our shareholders held an extraordinary shareholders' meeting during which they unanimously approved a capital increase of up to Ps.628,704,540 and the public offering and listings of our class B shares. All of the new common shares were designated as class B shares, with a par value of Ps.1.00. During this extraordinary shareholders' meeting, all of our existing shareholders decided to launch an exchange offer of the new shares for shares of Banco Galicia waiving their preemptive rights. In addition, the shareholders determined that the exchange ratio for the exchange offer would be one class B share of Banco Galicia for 2.5 of our class B shares and one ADS of Banco Galicia for one of our ADSs. The exchange offer was completed in July 2000. At the date of completion of the exchange offer, our only significant asset was our 93.23% interest in Banco Galicia.
On January 2, 2004, our shareholders held an extraordinary shareholders' meeting during which they approved a capital increase of up to 149,000,000 preferred shares. This capital increase was carried out in connection with the restructuring of the Bank's foreign debt. On May 13, 2004, we issued 149,000,000 preferred non-voting shares, with preference over the ordinary shares in the event of liquidation, each with a face value of Ps.1.00. The preferred shares were converted into class B shares on May 13, 2005.
Nowadays, Grupo Financiero Galicia owns 94,84% of the outstanding shares of Banco Galicia, which is our most significant asset. Total outstanding shares of Grupo Galicia amount to 1.241,4 million shares composed of 281.2 million of Class A shares and 960.2 million of Class B shares. Class A shares entitle 5 votes, Class B entitle have one vote.
As a holding company we do not have operations of our own and conduct our business through our subsidiaries. By this way, Grupo Galicia participates in the banking sector through Banco Galicia, in the business of insurances by its subsidiary Sudamericana Holding S.A and in the bussines of issuance of certificates of deposit of goods through Galicia Warrants S.A.. In addition Grupo Financiero has developed other business through Net Investment S.A, Galval S.A. y GV Mandataria de Valores S.A.
Our principal executive offices are located at Teniente General Juan D. Perón 456, Second Floor, (C1038AAJ), Buenos Aires, Argentina.