Key points
- FBN Holdings is divesting its FBNQuest Merchant Bank unit to boost asset quality and focus on core banking, pending regulatory approval.
- The sale includes EverQuest Acquisition LLP, a consortium of Custodian Investments, Aion Investments and Evercorp Industries, as the preferred bidder.
- Under the leadership of Femi Otedola, FBN Holdings reported a 93.7% increase in profit to $217 million and significant growth in assets.
First Bank of Nigeria Holdings PLC (FBN Holdings), led by Nigerian billionaire Femi Otedola, is divesting its merchant banking unit FBNQuest Merchant Bank Limited. The move is part of a broader strategy to improve asset quality and strengthen operations.
The the sale was formally revealed “Notice of Divestiture by FBNQuest Merchant Bank Limited” sent to the Nigerian Stock Exchange (NGX) in accordance with the regulatory requirements of the NGX Rules. The announcement confirmed that FBN Holdings has entered into a share sale and purchase agreement to transfer its 100 percent stake in FBNQuest Merchant Bank.
EverQuest Consortium Wins Competitive Sale
The preferred bidder in the competitive sale process is EverQuest Acquisition LLP, a consortium comprising Custodian Investments PLC, Aion Investments and Evercorp Industries. Completion of the transaction is pending approval by the relevant regulatory authorities.
FBN Holdings said the sale is in line with its strategy to streamline its portfolio and focus on core banking. The sale is part of its long-term growth plan, led by chairman Femi Otedola, who holds an 11.67 percent stake and has contributed significantly to the group’s transformation.
The historical legacy of FBN Holdings and the strategic influence of Femi Otedola
FBN Holdings, one of Nigeria’s leading financial services groups, remains a key player in the nation’s economy. Its flagship unit, First Bank of Nigeria, is the country’s oldest commercial bank with a 130-year history, known for progressive financial inclusion and economic development in West Africa. The bank operates in Ghana, Senegal, The Gambia and worldwide with offices in London, Paris and a branch in Beijing.
Under Otedola’s leadership, FBN Holdings has experienced a period of remarkable financial results. The group reported a 127 percent rise in profit to $219.25 million (N310.01 billion) in 2023, up from $96.4 million (N136.31 billion) in the previous year. Otedola’s leadership, together with his position as chairman of Geregu Power PLC, has been pivotal, both as an investor and strategic leader, further cementing his influence on the Nigerian stock market.
Financial results and growth trajectory
FBN Holdings announced a A 93.7 percent rise in profit to N360.27 billion ($217 million) for the months ended 30up from N186.02 billion ($112.2 million) in the same period in 2023. The increase came from a net gain on financial instrument adjustments of N432.2 billion ($260.3 million), which offset 192 N .6 billion ($116 million) in foreign currency losses.
Retained earnings jumped to N945.95 billion ($570 million) from N588.9 billion ($354.7 million), while total assets rose to N23.4 trillion ($14.1 billion) from 16 N .9 trillion ($10.2 billion), cementing its position as one. of Nigeria’s largest financial groups.
As FBN Holdings continues to expand its operations, the divestment of FBNQuest Merchant Bank will allow the group to focus on its core banking services, enhance its asset quality and pursue additional growth opportunities under Otedola’s strategic leadership.
