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.
EverQuest Acquisition LLP, which emerged as the preferred bidder after a competitive selection process, is a consortium of investment and financial services firms.
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.
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.
