First Bank's Parent Company Completes Sale of Bank, Another Firm Takes Over
- First HoldCo Plc has finalized the sale of FBNQuest Merchant Bank Limited to EverQuest Group in a strategic restructuring exercise
- The gains realised from the sale will boost FirstBank's capital base and support technology-driven innovation in the Group
- Also, the transaction refines First HoldCo’s strategy with a major focus on core commercial banking and maintaining essential financial service subsidiaries
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Legit.ng journalist Dave Ibemere brings over a decade of experience in all things business journalism, with a deep understanding of the Nigerian economy and stock markets
First HoldCo Plc has completed the divestment of its merchant banking subsidiary, FBNQuest Merchant Bank Limited, selling its entire stake to EverQuest Group.
The parent company of First Bank of Nigeria said the transaction is part of a strategic plan to optimise capital allocation, improve capital efficiency and support growth in its core commercial banking operations.
Source: Getty Images
EverQuest Acquisition LLP, which emerged as the preferred bidder after a competitive selection process, is a consortium of investment and financial services firms.
EverQuest Group takes over FBNQuest Merchant Bank
In a press release, First HoldCo explained that leaving the merchant banking business would enable the group to focus on developing their commercial banking business and improve their existing subsidiaries with a strategy of providing a sustainable return to their shareholders.
The funds will be allocated from this acquisition to improve the capital base of FirstBank, which is considered a flagship subsidiary, and investments in technology-driven innovation for enhanced customer interaction and service delivery.
After this divestment, First HoldCo is left with ownership of FirstBank, FirstCap, First Asset Management, First Trustees, First Securities Brokers, and First Insurance Brokers.
Speaking on the change, Femi Otedola, Chairman of First HoldCo Plc, explained the transaction as another step in achieving the future strategy of improving performance and creating additional value for shareholders and other stakeholders.
Also, the Group Managing Director, Wale Oyedeji, stated that this will allow them to better allocate resources, improve their core banking business, and boost their growth.
Source: UGC
The finality of this transaction was, however, attested to by the group company secretary of this conglomerate, named Abiola Baruwa, who stated that all relevant approvals have been obtained from the Central Bank of Nigeria.
He clearly stated that this transaction is in accordance with rules laid out in Nigerian Exchange Limited to inform the market and relevant investors in such a transaction.
The divestment finally puts an end to months of negotiation and approvals which started in 2024 and is considered to be among the most prominent corporate transactions in Nigeria’s banking industry in recent years, Leadership reports.
Femi Otedola’s net worth rise
Femi Otedola’s wealth has increased, helping him climb the global billionaire rich list.
New data from Forbes showed that Otedola net worth has increased to $1.6 billion. This represented a $100 million increase in one month, compared to $1.5 billion.
Otedola shares ambition for First Bank
Earlier, Legit.ng reported that Femi Otedola said his cumulative cash investment in the institution is projected to rise to about N320 billion after the next phase of its capital-raising programme.
He attributed the move to confidence in Nigeria’s evolving economic landscape, applauding President Bola Tinubu’s bold reforms for creating a more attractive environment for long-term investment.
Otedola also commended the Central Bank of Nigeria Governor, Olayemi Cardoso, for his role in driving financial sector stability.
Source: Legit.ng
