Emmanuel OchayiFBN Holdings Plc has officially announced the sale of its entire equity stake in its subsidiary, FBNQuest Merchant Bank Limited, to EverQuest Acquisition LLP.
The agreement aligns with FBN Holdings’ strategy to optimise its portfolio.
Join our WhatsApp ChannelThis sale is subject to approvals from regulatory authorities, a key step in the financial group’s ongoing efforts to streamline its operations.
Strategic Move for FBN Holdings Plc
According to FBN Holdings Plc, this divestment is part of a broader strategy. The acting Company Secretary, Adewale Arogundade, confirmed this in a statement to the Nigerian Exchange Limited (NGX) on September 7, 2024.
The statement reads: “FBN Holdings Plc has entered into a share sale agreement to divest its 100% equity stake in FBNQuest Merchant Bank Limited. The sale is in line with the company’s strategy to optimize its portfolio within the group.”
Arogundade emphasized that EverQuest Acquisition LLP emerged as the preferred bidder after a competitive process.
“Following a transparent and competitive bidding process, EverQuest Acquisition LLP, which comprises Custodian Investment Plc, Aion Investments, and Evercorp Industries, was selected,” Arogundade stated.
What This Means for FBN Holdings Plc
The sale of FBNQuest Merchant Bank marks a significant shift for FBN Holdings, one of Nigeria’s oldest and largest financial institutions.
The merchant bank had represented a smaller portion of FBN Holdings’ revenue, contributing less than 5% to the group’s overall operating income.
READ ALSO: Otedola Buys More FBN Holdings Shares, Maintains Largest Shareholder Position
This move is aimed at focusing on more significant business segments within the FBN Holdings Plc group.
Industry analysts have noted that this sale allows them to concentrate on its core banking activities. “This divestment aligns with FBN’s long-term vision to focus on areas where the group has stronger market dominance,” said John Adeyemi, a financial analyst in Lagos.
Market Performance Amid Dispute
FBN Holdings Plc has been in the news recently for its legal battle with one of its major investors, Barbican Capital Limited, a subsidiary of Honeywell Group.
Barbican Capital, chaired by Oba Otudeko, had taken legal action against FBN Holdings Plc, challenging the alteration of over 5 billion shares. Despite this, FBN Holdings reported strong financial performance in its 2024 half-year results.
The group recorded a profit before tax of N177.79 billion, an 18.9% year-on-year increase. The half-year profits surged to a record N411.9 billion, marking its best-ever performance.
Commenting on these figures, Adewale Arogundade said, “We are proud of our performance so far this year. This has been a year of growth and resilience for FBN Holdings Plc.”
Why EverQuest Acquisition LLP Was Chosen
EverQuest Acquisition LLP is a consortium consisting of Custodian Investment Plc, Aion Investments, and Evercorp Industries. This consortium was selected after a competitive bidding process.
Analysts believe that EverQuest’s existing portfolio and expertise in financial services made it a natural fit to take over FBNQuest Merchant Bank.
While the sale is still awaiting regulatory approval, the transaction is expected to be finalised soon. An insider at FBN Holdings revealed that “We anticipate all regulatory approvals to be granted within the next few months, and the transition will be seamless.”
FBN Holdings Plc’s Future Plans
Looking forward, FBN Holdings Plc plans to continue strengthening its key business areas, especially commercial banking.
The sale of FBNQuest Merchant Bank allows the company to focus on more profitable ventures and improve its market position.
“FBN Holdings Plc remains committed to providing world-class financial services to its customers. This sale is part of our strategy to build a more robust and efficient portfolio,” the company noted in its statement.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
