FBN Holdings Refines Strategy with Divestment from FBNQuest Merchant Bank
By Innocent Eneta,
In a significant corporate move, FBN Holdings Plc has provided clarity regarding its decision to divest its Merchant Banking business, FBNQuest Merchant Bank Ltd., to EverQuest Acquisition LLP. The announcement, made by Acting Company Secretary Mr. Adewale Arogundade, was conveyed through a notification to the Nigerian Exchange Ltd. (NGX) in Lagos on Tuesday.
The decision, according to Arogundade, is part of a broader strategy to optimize the group’s portfolio. “We wish to clarify that all other entities and businesses listed below are not included in the divestment and they remain subsidiaries of FBN Holdings and are well integrated into the group’s strategic focus,” he stated, emphasizing the narrow scope of the divestment.
The entities not affected by this divestment include FBNQuest Capital Ltd., FBNQuest Asset Management Ltd., FBNQuest Trustees Ltd., FBNQuest Funds Ltd., and FBNQuest Securities Ltd., which remain integral to the group’s strategic framework.
FBN Holdings initially announced the divestment last Friday, revealing the sale of a 100 percent equity stake in FBNQuest Merchant Bank Ltd. to EverQuest Acquisition LLP. The sale and purchase agreement is pending approval from the relevant regulatory authorities.
A divestment, in corporate terms, is the process by which a company sells off all or part of its assets. Often seen as a strategic move to improve a company’s value and efficiency, divestment allows businesses to refocus on core operations by shedding peripheral assets.
FBN Holdings’ recent action is aligned with this approach, aiming to sharpen its focus on the core businesses within the group, while ensuring that other subsidiaries continue to operate unaffected by the transaction.
The announcement offers reassurance to stakeholders that the divestment of FBNQuest Merchant Bank is a calculated move, with no adverse impact on the continued operations or strategic positioning of FBN Holdings’ other subsidiaries.
