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.
Acting company secretary of the Holdings Adewale Arogundade, 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.
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 positioning 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
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