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Tag: FBN Holdings

  • FBN Holdings clarifies on divestment of FBNQuest Merchant Bank

    FBN Holdings clarifies on divestment of FBNQuest Merchant Bank

    FBN Holdings Plc, on Tuesday explained the rationale behind the divestment of its Merchant Banking business to EverQuest Acquisition LLP.

    The Holding company also listed its other entities and businesses not included in the sale.

    Mr Adewale Arogundade, Acting Company Secretary of the Holdings made the clarification in a notification sent to the Nigerian Exchange Ltd.(NGX) in Lagos.

    A divestment involves a company selling off full or partial stake of its assets through sale, exchange, closure, or bankruptcy, often to improve the company’s value and obtain higher efficiency.

    Many companies use divestment to sell off peripheral assets that enable their management teams to regain sharper focus on the core business.

    NAN reports that FBN Holdings had, on Friday informed the NGX of sale of 100 per cent equity stake in its wholly-owned subsidiary, FBNQuest Merchant Bank Ltd., to EverQuest Acquisition LLP.

    The Holdings said the sale and purchase agreement which aligns with its strategy to optimise its portfolio within the group was subject to approvals from the relevant regulatory authorities.

    Arogundade said that the divestment pertains solely to FBNQuest Merchant Bank, with no impact on the continued operations or strategic positoning of its other subsidiaries within the group.

    “We wish to clarify that all other entities and businesses listed below are not included in the divestment and they remain subsidiaries of FBN Holding  and are well integrated into the group’s strategic focus.

    “These entities are: FBNQuest Capital Ltd.,  FBNQuest Asset Management Ltd., FBNQuest Trustees Ltd., FBNQuest Funds Ltd., and FBNQuest Securities Ltd.,”he said.

  • NGX market capitalisation down by N673bn

    NGX market capitalisation down by N673bn

    The Nigerian equity market on Wednesday experienced a downturn, losing N673 billion in market capitalisation due to sell-offs in major stocks like MTN Nigeria and Transcorp Hotel.

    Specifically, the market capitalisation shed 1.20 per cent or N673 billion to close at N55.494 trillion, compared to 56.167 trillion recorded on Tuesday.

    The All-share Index also lost 1.20 per cent or 1,190 points to close at 98,121.30, in contrast to 99,311.54 posted in the previous session.

    Consequently, the Year-To-Date (YTD) return declined to 31.22 per cent.

    Other declined equities, such as FBN Holdings, Cornerstone Insurance, Mutual Benefits Assurance, among others, also affected the market performance negatively.

    However, the market breadth closed positive with 22 advanced stocks outnumbering 19 declined others.

    On the gainers log, Sunu Assurances, Neimeth International Pharmaceuticals, The Initiative Plc(TIP) led by 10 per cent each to close at N1.21, N1.98 and 1.98 per share, respectively.

    Cap Plc followed closely with 9.90 per cent to close at N28.85 and UPDC Real Estate Investment Trust rose by 9.76 per cent to close at N1.35 per share.

    On the flip side, Transcorp Hotel and MTN led the losers log by 10 per cent each to close at N87.93 and N201.60 per share, respectively.

    Oando trailed closely by 9.90 per cent to close at N9.10, FBN Holdings lost 9.82 per cent to close at N19.75, while FIDSON Healthcare Plc dropped 9.82 per cent to close at N19.75 per share.

    Analysis of the market activities also showed trade turnover settled higher relative to the previous session, with the value of transactions up by 22.10 per cent.

    A total of 395.75 million shares valued at N9.58 billion were exchanged in 7,907 deals, as against 574.43 million shares valued at N7.84 bilion in 7,324 deals traded previously.

    Meanwhile, Guaranty Trust Holding Company Plc (GTCO) led the volume and value chart with 81.41 million shares valued at 2.93 billion, Zenith Bank followed by 46.16 billion shares worth N1.69 billion.

    United Bank of Africa(UBA) traded 41.60 million shares worth N953.52 million, FBN Holdings transacted 23.44 million shares valued at N480.99 million and Access Corporation sold 22.30 million shares worth N361.89 million.

    Reacting, Mr David Adonri, Vice Chairman, Highcap Securities Ltd., said that the equity market had been undergoing some forms of corrections to realign it with fundamentals of the capital market.

    Adonri, in an interview in Lagos, said this was responsible for the recent bearish mood of the market.

    According to him, underpinning this correction is the high yield on debt and failure of equities to justify its exuberant rally.

  • FBN Holdings share plunges after appointing new MD

    FBN Holdings share plunges after appointing new MD

    The share value of FBN Holdings Plc on the stock market fell by 84.32 per cent on Monday, following the announcement of Mr Olusegun Alebiosu as the Managing Director of its subsidiary, First Bank of Nigeria.

    The appointment followed the resignation of the former Managing Director of the bank, Mr Olusola Adedutan, on April 20.

    Specifically, investors traded a total of N2.11 million shares of FBN Holdings worth N49.52 million, in contrast to N12.83 million shares valued at N315.73 million exchanged in the previous session.

    The Group’s board of directors on Sunday, announced the appointment of Alebiosu as the acting Managing Director of First Bank Plc with immediate effect and subject to the approval of the Central Bank of Nigeria (CBN).

    Mr Tajudeen Olayinka, Chief Executive Officer, Wyoming Capital & Partners, however, said such negative reaction by investors was bound to happen, following the resignation and appointment saga that occurred in the bank within the weekend.

    Olayinka, described the reaction as a ‘flight to safety’ on the part of the investors.

    He explained that there are speculation of bothering issues within the board of directors the bank, which led to the resignation of its former managing director, Adedutan.

    According to him, investors are yet to have concrete and factual information about what transpired within the board of the bank that led to the resignation of the erstwhile managing director.

    This, he said,  led to a sitiation where investors thought it was safe to withdraw their investment until the coast in clear.

    “While the long-term investors may not bother so much about the development in the bank because it is surely temporary, the short-term investors will, because they do not want to loose their money.

    “The investors decided to flight their investment to safety until new information that actually put the development in the bank in context is in their disposal, ” he added.

    He recounted that Adedutan was sacked in 2021 by the bank’s board of directors before the CBN waded into the issue and re-instated him because his removal was without regulatory approval.

    Olayinka said that the sudden resignation of Adedutan before the expiration of his tenure on Dec.31, 2024, might not be unrelated to some pending unresolved issues within the board of the bank.

    He stated that investors would want to be sure that the bank is safe enough for them to continue keeping their money, especially in the midst of whatever that might have happened within its board.

    This, he noted, resulted in the negative reaction by investors.

    Meanwhile, renewed investors’ interest in Tier-one banks, namely: Zenith Bank, Guaranty Trust Holding Company (GTCO), United Bank of Africa(UBA) on Monday reversed some losses recorded by the equity market in the previous sessions.

    Specifically, the market capitalisation which opened at N56.296 trillion, gained N71 billion or 0.13 per cent to close at N56.367 trillion.

    The All-Share Index also added 0.13 per cent or 124 point, to settle at 99,665.05, in contrast to 99,539.75 recorded on Friday.

    As a result, the Year-To-Date (YTD) return rose to 33.29 per cent.

    However, market breadth closed negative with 19 losers and 16 gainers.

    On the losers’ table, The Initiative Plc led by 10 per cent to close at N1.80, Prestige followed by 9.84 per cent to close at 55k, while Omatek Venture lost 9.52 per cent to close at 76k per share.

    Vitafoam Nigeria declined by 9.26 per cent to close at N17.15 and LearnAfrica shed 0.30 per cent N3 per share.

    Conversely, Japaul Gold Group led the gainers’ log by 9.58 per cent to close at N1.83.

    GTCO followed by 9.55 per cent to close at N36.70, while FTN Cocoa gained 8.76 per cent to close at N1.49 per share.

    Universal Insurance Plc added 8.57 per cent to close at 38k and RT Briscoe rose by 8.47 per cent to close at 64k per share.

    However, analysis of the market activities showed that trade turnover settled lower relative to the previous session, with the value of transactions down by 1.81 per cent.

    A total of 306.62 million shares valued at N5.30 billion were exchanged in 8,298 deals, as against 257.86 million shares valued at N5.40 billion  in 7,168 deals traded previously.

    Meanwhile, GTCO led the activity chart in volume and value with 50.16 million shares traded in deals worth N1.77 billion, Access Corporation trailed with 48.07 million shares worth N815.93 million.

    UBA sold 41.74 million shares valued at N956.46 million, Universal Insurance traded 39.71 million shares worth N14.39 million and Zenith Bank transacted 15.17 million shares worth N560.32 million.

  • FBN Holdings appoints Femi Otedola as Chairman

    FBN Holdings appoints Femi Otedola as Chairman

    FBN Holdings Plc on Wednesday appointed Mr. Olufemi Otedola as its new Chairman, Board of Directors.

    The Holdings announced this in a notification signed by the Company’s Secretary, Mr Adewale Arogundade, and sent to the Nigerian Exchange Ltd. (NGX) in Lagos.

    The appointment was a fall-out of the meeting of the Board of Directors of the company.

    Arogundade said that Otedola succeeds the outgoing Chairman of the Board, Alhaji Ahmad Abdullahi.

    He stated that the new chairman was appointed to the Board of FBN Holdings Plc on Aug. 15, 2023 as a Non-Executive Director.

    The company’s secretary described Otedola as a visionary entrepreneur with a track record of pioneering businesses, growing and transforming corporations.

    He said: “His first foray into the downstream sector of the oil and gas industry began with Zenon Petroleum and Gas Ltd., thus disrupting and redefining standards in the industry.

    “He thereafter initiated the purchase of majority shareholding in the then African Petroleum Plc in May 2007 and became the Chairman of the Board on May 25, 2007.

    “His vision transformed African Petroleum Plc into Forte Oil Plc (FO Plc).

    “The company grew In leaps and bounds to become a model of the possibilities inherent in Nigeria, winning numerous accolades in recognition of the successful business turnaround.

    “Diversified portfolio, prompt financial reporting, strong corporate governance, and investment of choice within the oil and gas industry.”

    According to him,Otedola, in 2018 divested from the company by selling his shareholdings to the ignite Consortium led by Prudent Energy Services Ltd. and handed it over in June 2019 after completing the transaction.

    Arogundade explained that the divestment from Forte Oil Plc and acquisition of FO Pile shares in Amperion Power Distribution Company Ltd., among other acquisitions, enabled Otedola to focus on the power sector as the company’s executive chairman.

    He said the new chairman’s doggedness culminated in the acquisition of a majority stake in the 414MW Geregu Power Plant by Amperion Power Distribution Company Ltd. in August 2013.

    According to him, Otedola has investments spread across various other interests including storage, shipping, and insurance brokerage in addition to port agency and petroleum retail outlets.

    Arogundade said the business mogul has built a formidable and value-driven presence along the downstream value chain.

    “Otedola has a rich experience in corporate boards having held several board memberships, including President of the Nigerian Chamber of Shipping.

    “He also served as the Chalrman of Transcorp Hilton Hotel, Abuja,  and was appointed a member of the Governing Council of the Nigerian Investment Promotion Council (NIPC) in January 2004.

    “In December of the same year, he became a member of the committee saddled with the task of fostering business relationships between the Nigerian and South African private sectors.

    “He was also a member of the National Economic Management Team chaired by former President Goodluck Jonathan from September 2011 to May 2015, and the Honorary International Investors Council chaired by Baroness Lynda Chalker.

    “Otedola is currently a member of the revered National Peace Committee and has received several awards and recognitions for his immense contributions to the growth of the Nigerian economy.

  • BREAKING: Femi Otedola now majority shareholder of FBN Holdings, owners of First Bank [How it happened]

    BREAKING: Femi Otedola now majority shareholder of FBN Holdings, owners of First Bank [How it happened]

    Report reaching TheNewsGuru(TNG) indicates that billionaire Femi Otedola, has acquired the majority shares in FBN Holdings, owners of First Bank of Nigeria Limited.

    Otedola reportedly took over the bank with the acquisition of about ₦30 billion worth of shares, making him the single largest shareholder of the bank.

    Otedola, being the largest shareholder, holds the highest voting shares, giving him power to dictate the direction of the bank through his voting power.

    According to sources who spoke to this news platform on the subject matter, FBN holdings will soon make a public announcement on the historic purchase of the company shares on the floor of the Nigerian Stock Exchange by Otedola.

    It was gathered that Otedola has been acquiring the shares of the bank through a vehicle, Calvados Global Services Ltd. It is also likely that there could be other vehicles associated with Mr Otedola who may have also been mopping up shares.

    FBNH currently has 34.7 billion of its shares floating freely meaning it is held by diverse shareholders. This makes the shares easy to acquire on the stock exchange.

    The latest audited account of FBN Holdings does not have any shareholder with up to 5% of the ownership of the banking behemoth. Nairametrics understands Mr Otedola, through his proxies and investing vehicles, now owns over 5% of the bank, setting himself up to be the single largest shareholder of the bank.

    It was gathered that Otedola decided to take over First Bank Nigeria because of the internal crisis rocking the bank.

    The crisis, a tussle for control of the bank was between the then major shareholders, one block led by Oba Otudeko, who was the chairman of FBN Holdings’ board, and Mr Adenuga, who later emerged as one of the biggest shareholders in the bank.

    Recall that Mr Otudeko and Ibukun Awosika, his ally on the board of FirstBank of Nigeria Limited, were removed from their positions as chairmen of FBN Holdings and FirstBank respectively, Mr Adeduntan, who represented the interest of a late Ibadan mogul and prominent shareholder, Arisekola Alao, was reinstated as the bank’s chief executive, according to people with knowledge of the matter.