FBN Holdings Plc has announced the sale of its 100% equity stake in its wholly-owned subsidiary, FBNQuest Merchant Bank Limited to EverQuest Acquisition LLP.

The sale and purchase agreement which aligns with FBN’s strategy to optimize its portfolio within the group, is subject to approvals from the relevant regulatory authorities.

This disclosure is contained in a notification to Nigerian Exchange Limited (NGX) and the investing public on Friday, September 7, 2024, by FBN Holdings Plc and signed by its acting Company Secretary, Adewale Arogundade.

FBN Holdings, in its notification, stated that EverQuest Acquisition LLP, which comprises Custodian Investment Plc, Aion Investment, and Evercorp Industries, was selected as the preferred bidder after a competitive bid process.

FBNQuest Merchant Bank reported a profit for the year of N7.2 billion as of December 2022 with a total asset of N361 billion.

What FBN Holdings Plc is saying

The notification from FBN Holdings Plc reads, ‘’In accordance with the Nigerian Exchange Limited (NGX) rule book, we hereby notify the Nigeria Exchange Limited (NGX) and the investing public that FBN Holdings Plc (‘the company’) has entered into a share sale and purchase agreement to divest its 100% equity stake in its wholly owned subsidiary, FBNQuest Merchant Bank Limited. This sale is in alignment with the company’s strategy to optimize its portfolio within the group.

‘’Following a competitive bid process, EverQuest Acquisition LLP (comprising Custodian Investment Plc, Aion Investments and Evercorp Industries) was selected as the preferred bidder. The completion of the sale is subject to approvals from the relevant regulatory authorities.’’

FBN Holdings Plc performance

The divestment is coming at a time when FBN Holdings Plc is embroiled in a dispute with one of its major investors, Barbican Capital Limited, a subsidiary of Honeywell Group Limited.

Barbican Capital, which has the Chairman of FBN Holdings Plc, Oba Otudeko, as its promoter, had dragged the financial services group to court over allegation bordering on the alteration of 5.39 billion units of shares in FBN Holdings, a significant stake in the leading financial institution.

FBN Holdings Plc, Nigeria’s oldest financial institution had earlier released its 2024 second-quarter results, showing a pre-tax profit of N177.79 billion, representing an 18.9% year-on-year growth.

The impressive growth in pre-tax profits boosted half-year profitability to a record N411.9 billion for the group, marking its best-ever half-year performance on record.

FBN Holdings’ half-year profit of N411.9 billion is more than double the N205 billion pre-tax profit reported for the same period in 2023. Its share price as at Friday, September 6, 2024, is N22.05.

FBNHoldings is a financial holding company and one of the largest financial services organisations in Africa. It is a diversified and leading financial services Group offering a broad range of products and services through its subsidiaries, across commercial banking, merchant banking, capital markets, trusteeship and insurance brokerage to millions of customers.

About FBNQuest Merchant Bank

FBNQuest Merchant Bank (formerly known as Kakawa Discount House) licensed by the Central Bank of Nigeria is a leading corporate and investment banking house, delivering high-end financial products and services to clients in targeted sectors of the economy.

FBN Holdings acquired Kakawa Discount House in 2014 and secured regulatory approval to commence operations as a merchant bank in 2015.

FBNQuest Merchant Bank represents less than 5% of FBN Holdings’ overall operating revenue and assets, and the decision to sell was in line with strategic realignment within the group.