First Bank of Nigeria has clarified that its recent announcement regarding the sale of its 100% equity stake applies solely to FBNQuest Merchant Bank and does not affect any other subsidiaries within the group.
On September 7, 2024, FBN Holdings Plc announced the divestment of its 100% equity stake in FBNQuest Merchant Bank Limited, a wholly-owned subsidiary, to EverQuest Acquisition LLP.
However, to address any misunderstandings surrounding the transaction, the bank issued a follow-up statement through its company secretary, Mr. Adewale Arogundade, on Tuesday, September 10, 2024, to clarify the rationale behind the divestment.
Clarification from the Company Secretary
Mr. Adewale Arogundade, the company secretary of FBN Holdings, emphasized that the divestment is limited solely to FBNQuest Merchant Bank and does not extend to any other entities within the group.
He reassured stakeholders that the divestment would not impact on the strategic positioning of the group’s remaining subsidiaries, which continue to play an integral role in the company’s overall operations.
“We wish to clarify that all other entities and businesses listed below are not included in the divestment, and they remain subsidiaries of FBN Holdings, fully integrated into the group’s strategic focus,” Mr. Arogundade stated.
He further listed the subsidiaries unaffected by the divestment, including FBNQuest Capital Ltd., FBNQuest Asset Management Ltd., FBNQuest Trustees Ltd., FBNQuest Funds Ltd., and FBNQuest Securities Ltd.
Reason for Divestment
The decision to divest FBNQuest Merchant Bank is part of a broader strategy by FBN Holdings to streamline its portfolio and focus on core businesses with stronger operational potential.
According to the statement, this strategic realignment aims to optimize the group’s overall operations and improve business efficiencies.
After a competitive bidding process, EverQuest Acquisition LLP, which includes Custodian Investment Plc, Aion Investments, and Evercorp Industries, emerged as the preferred bidder for FBNQuest Merchant Bank.
The sale is expected to be finalized pending approvals from relevant regulatory authorities.
About FBNQuest Merchant Bank
FBNQuest Merchant Bank traces its origins to Kakawa Discount House Limited, which was incorporated in 1995. FBN Holdings acquired Kakawa Discount House in 2014, obtaining regulatory approval to commence merchant banking operations the following year.
In 2017, FBN Holdings transferred its investment banking and asset management businesses, including FBNQuest Securities and FBNQuest Asset Management, to the merchant bank to enhance its capabilities.
FBN Holdings at a Glance
FBN Holdings Plc is a financial holding company and one of Africa’s largest financial services organizations.
The group offers a diverse range of products and services, including commercial banking, merchant banking, capital markets, trusteeship, and insurance brokerage, serving millions of customers across the continent.
The divestment of FBNQuest Merchant Bank is a strategic step to ensure the continued success and growth of its core business lines.