First HoldCo Plc has successfully completed the divestment of its entire stake in FBNQuest Merchant Bank, concluding a strategic transaction that began during its group-wide restructuring in 2024. The company announced the completion to the Nigerian Exchange Limited, confirming that all necessary regulatory approvals, including clearance from the Central Bank of Nigeria, had been obtained.
The buyer, EverQuest Acquisition LLP, now assumes full ownership and control of FBNQuest Merchant Bank, marking a significant shift in Nigeria’s merchant banking sector.
The New Owner: EverQuest Acquisition LLP
EverQuest Acquisition LLP is an investment consortium made up of strategic local and international partners. The group emerged as the winning bidder after a competitive selection process and is expected to inject new strategic direction, capital, and management oversight into the merchant bank.
Why First HoldCo Sold FBNQuest Merchant Bank
Portfolio Streamlining
FBNQuest Merchant Bank contributed a small share of First HoldCo’s overall earnings and assets. As the company refined its structure after rebranding from FBN Holdings to First HoldCo, it identified the merchant-banking arm as non-core within its long-term strategy.
Regulatory and Capital Efficiency
Maintaining a merchant-banking subsidiary under a large holding group carries significant capital, governance, and regulatory obligations. Exiting this segment helps First HoldCo reduce operational complexity and regulatory load.
Sharpened Focus on Core Businesses
The divestment allows First HoldCo to channel resources toward strengthening its flagship banking subsidiary, First Bank of Nigeria Limited, and enhancing its other core financial services such as asset management, trusteeship, and securities.
Financial Impact on First HoldCo
The group reported a loss of ₦16.39 billion on the transaction, reflecting the difference between the carrying value of FBNQuest Merchant Bank on its books and the final divestment amount agreed with the buyer.
Despite the accounting loss, analysts consider the sale a strategically positive move for First HoldCo, improving its long-term balance-sheet flexibility and operational focus.
What Was Included in the Sale
The divestment covered only FBNQuest Merchant Bank, specifically its merchant-banking license, operations, balance sheet, and full corporate structure.
Other FBNQuest subsidiaries remain fully under First HoldCo, including:
- FBNQuest Asset Management
- FBNQuest Trustees
- FBNQuest Capital
- FBNQuest Funds
This means the group has exited merchant banking but has not exited investment banking, asset management, or wealth-management activities.
Sector and Market Implications
Impact on First HoldCo
The divestment:
- Simplifies First HoldCo’s operational structure
- Reduces capital and regulatory burdens
- Enhances capacity for future recapitalization
- Strengthens focus on First Bank and high-value subsidiaries
Impact on the Merchant-Banking Sector
Under its new owners, FBNQuest Merchant Bank is expected to undergo strategic repositioning. The acquisition may lead to:
- Fresh capital injection
- A new business direction
- Expanded service offerings
- A potential rebranding
The move signals growing investor interest in Nigeria’s merchant-banking sector.
