First HoldCo Plc has announced the successful completion of its divestment from its merchant banking subsidiary, FBNQuest Merchant Bank Limited, marking a major strategic shift aimed at strengthening the Group’s core operations.
In a statement issued by the company, First HoldCo said the divestment, which saw FBNQuest Merchant Bank Limited transferred to the EverQuest Group, would enable the Group to optimise resource allocation and reinforce its focus on delivering comprehensive financial solutions across its businesses.
The proceeds from the transaction will be deployed to strengthen the capital base of First HoldCo’s flagship subsidiary, FirstBank, while the Group also intensifies investments in technology-driven innovations to enhance customer engagement, improve service delivery and redefine overall client experience.
According to the Board, the divestment is part of a broader strategy to improve capital efficiency and concentrate on key growth sectors. By reallocating resources towards commercial banking and deepening offerings across its subsidiaries, the Group aims to boost innovation, deliver greater value to customers and achieve sustainable returns for shareholders.
Following the divestment, First HoldCo Plc retains a robust portfolio of subsidiaries, including FirstBank, FirstCap, First Asset Management, First Trustees, First Securities Brokers and First Insurance Brokers.
Commenting on the development, Chairman of First HoldCo Plc, Mr Femi Otedola, CON, said the move aligns with the Group’s long-term strategy.
“This divestment is fully consistent with our long-term strategy to enhance the Group’s performance and create additional value for both shareholders and stakeholders. It represents a strategic action that positions us for improved returns and sustainable growth,” Otedola said.
Also speaking, the Group Managing Director of First HoldCo Plc, Mr Wale Oyedeji, noted that the decision would allow the Group to focus more effectively on its core strengths.
“By divesting from the merchant banking business, we are reallocating resources to strengthen our commercial banking operations and drive growth across the Group. This strategic decision enables us to concentrate on executing our objectives more effectively and reinforces our commitment towards market leadership,” he said.
First HoldCo Plc expressed optimism that the divestment would open up new opportunities for growth, noting that the enhancement of its commercial banking services underscores its commitment to evolving with clients and delivering customised financial solutions in an increasingly dynamic market environment.
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