FirstBank clarifies sale of FBNQuest Merchant Bank, reassures of group’s stability

First Bank of Nigeria has issued a clarification regarding its recent decision to sell its 100% equity stake in FBNQuest Merchant Bank Limited, emphasizing that the divestment is confined solely to this subsidiary and does not impact any other entities within the group.

On September 7, 2024, FBN Holdings Plc, the parent company, announced the sale of FBNQuest Merchant Bank to EverQuest Acquisition LLP. The move is part of a broader strategy aimed at streamlining the company’s portfolio to concentrate on core businesses with stronger growth potential.

To clear up any confusion, FBN Holdings released a follow-up statement on September 10, 2024.

The statement, delivered by the company secretary, Mr. Adewale Arogundade, highlighted that the divestment is limited to FBNQuest Merchant Bank and does not affect the group’s other subsidiaries.

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 Mr. Arogundade reassured stakeholders that the strategic positioning of the group’s remaining entities, such as FBNQuest Capital Ltd., FBNQuest Asset Management Ltd., and others, remains intact.

“The divestment is a focused strategic decision. All other subsidiaries will continue to operate within FBN Holdings’ strategic framework,” Mr. Arogundade stated.

The sale of FBNQuest Merchant Bank is a step towards optimizing FBN Holdings’ operations, aiming for greater efficiency and a sharper focus on its core financial services.

After a competitive bidding process, EverQuest Acquisition LLP, comprising Custodian Investment Plc, Aion Investments, and Evercorp Industries, was chosen as the preferred bidder. The transaction is now pending regulatory approval.

This divestment marks a significant chapter in the history of FBNQuest Merchant Bank, originally founded as Kakawa Discount House Limited in 1995 and later integrated into FBN Holdings in 2014.

The sale is a strategic move by FBN Holdings to reinforce its commitment to its core businesses, ensuring long-term stability and growth across its operations.

FBN Holdings Plc, one of Africa’s largest financial services organizations, continues to offer a broad range of services across commercial banking, merchant banking, and other financial sectors.

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The group’s decision to divest from FBNQuest Merchant Bank is expected to strengthen its focus on areas with higher operational potential, ensuring continued growth and success.