First Bank of Nigeria Holdings PLC (FBN Holdings), led by Nigerian billionaire Femi Otedola, is selling off its merchant banking subsidiary, FBNQuest Merchant Bank Limited. This move is part of a larger effort to improve asset quality and strengthen operations.
The Nigerian Exchange (NGX) received a formal “Notification of Divestment from FBNQuest Merchant Bank Limited” in accordance with the NGX Rulebook regulations. The notification confirmed that FBN Holdings has agreed into a Share Sale and Purchase Agreement to transfer its whole equity investment in FBNQuest Merchant Bank.
EverQuest Acquisition LLP, a consortium made up of Custodian Investments PLC, Aion Investments, and Evercorp Industries, has emerged as the preferred bidder in the competitive sale process. The deal is pending approval from the relevant regulatory authorities.
FBN Holdings stated that the disposal is consistent with its objective of streamlining its portfolio and focusing on core banking. The transaction is part of the company’s long-term growth strategy, driven by Chairman Femi Otedola, who owns an 11.67 percent interest and has been key in spearheading the group’s transformation.
FBN Holdings, one of Nigeria’s leading financial services companies, maintains an important component in the country’s economy. Its flagship unit, First Bank of Nigeria, is the country’s oldest commercial bank, dating back 130 years and noted for promoting financial inclusion and economic development in West Africa. The bank operates in Ghana, Senegal, and Gambia, as well as in London, Paris, and Beijing.
FBN Holdings has enjoyed exceptional financial achievement under Otedola’s leadership. In 2023, the group recorded a 127-percent profit growth, hitting $219.25 million (N310.01 billion), up from $96.4 million (N136.31 billion) the year before. Otedola’s leadership, combined with his role as chairman of Geregu Power PLC, has been critical as an investor and strategic leader, consolidating his influence on the Nigerian Exchange.
FBN Holdings announced a 93.7% profit increase to N360.27 billion ($217 million) for the quarter ending June 30, compared to N186.02 billion ($112.2 million) in 2023. The increase came from N432.2 billion ($260.3 million) in net profits from financial instrument adjustments, which offset N192.6 billion ($116 million) in foreign exchange losses.
Retained earnings increased to N945.95 billion ($570 million) from N588.9 billion ($354.7 million), and total assets increased to N23.4 trillion ($14.1 billion) from N16.9 trillion ($10.2 billion), cementing its position as one of Nigeria’s top financial organizations.
As FBN Holdings expands its activities, the divestiture of FBNQuest Merchant Bank will allow the company to focus on its core banking services, improve asset quality, and pursue more development prospects under Otedola’s strategic direction.
