FBN Holdings has announced the sale of its merchant banking arm, FBNQuest Merchant Bank Limited to EverQuest Acquisition LLP which comprises Custodian Investments Plc, Aion Investments and Evercorp Industries.
This disclosure was contained in a statement sent to the authorities of the Nigerian Exchange Group (NGX) late on Friday by Adewale Arogundade, acting company secretary, FBN Holdings.
“In accordance with the Nigerian Exchange Limited (NGX) Rulebook, we hereby notify the Nigerian Exchange Limited (NGX) and the investing public that FBN Holdings has entered into a Share Sale and Purchase Agreement to divest its 100% equity stake in its wholly owned subsidiary, FBNQuest Merchant Bank Limited. The sale is in alignment with the company’s strategy to optimise its portfolio within the Group.
“Following a competitive bid process, EverQuest Acquisition LLP (comprising Custodian Investments 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,” Arogundade said.
FBNQuest Merchant Bank is the investment-banking arm of the FBN holdings Group, providing advisory, asset management, markets and private equity services to a large institutional (corporations and governments) clientele, as well as merchant banking services.
According to the audited financial statements of FBN Holdings for the period ended 30 December 2023, FBN Merchant Bank generated N97.37 billion as revenue.
Interest income for the period was N39.01 billion while the associated interest expense was N33.49 billion. Profit before was N36.43 billion. Profit after tax was N26.29 billion having paid a tax expense of N9.94 billion.
It should be recalled that the apex bank in the country mandated commercial, merchant and primary mortgage banks in the country to recapitalise in order to have enough financial power to play their intermediation roles in the burgeoning Nigerian economy and in Africa as a whole.
The latest move by the FBN Holdings Group may not be unconnected with this mandate from the CBN, as many analysts had earlier predicted that the mandate of the CBN would engender mergers and acquisition in the nation’s banking industry.
