FBN Holdings Plc has announced the sell of its entire 100% equity stake in FBNQuest Merchant Bank Limited to EverQuest Acquisition LLP. This strategic sale is part of FBN Holdings' ongoing efforts to optimise its portfolio, subject to regulatory approval.
In a notification to the Nigerian Exchange Limited (NGX) on September 7, 2024, signed by Acting Company Secretary Adewale Arogundade, FBN Holdings disclosed that EverQuest Acquisition LLP, a consortium comprising Custodian Investment Plc, Aion Investment, and Evercorp Industries, emerged as the preferred bidder after a competitive bidding process.
FBN Holdings' statement read: "In line with our strategy to streamline our portfolio, we have signed a share sale and purchase agreement to divest our 100% equity in FBNQuest Merchant Bank Limited to EverQuest Acquisition LLP, subject to regulatory approvals."
This divestment occurs amidst a legal dispute between FBN Holdings and major investor Barbican Capital Limited, a subsidiary of Honeywell Group. The case involves allegations concerning the alteration of a significant 5.39 billion units of shares in FBN Holdings, with Barbican Capital promoted by FBN Holdings’ Chairman, Oba Otudeko.
Despite the dispute, FBN Holdings recently reported robust financial results for the second quarter of 2024, posting a pre-tax profit of N177.79 billion, an 18.9% increase year-on-year. The group’s half-year profit reached a record N411.9 billion, more than double the N205 billion pre-tax profit recorded in 2023.
FBNQuest Merchant Bank, formerly Kakawa Discount House, was acquired by FBN Holdings in 2014 and became a merchant bank in 2015. The subsidiary, contributing less than 5% to the group's revenue and assets, was sold as part of the group's strategic realignment.
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