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First HoldCo Group booked a net sales proceeds of N35.61 billion from the disposal of a 100% stake in FBNQuest Merchant Bank, however it made a loss of N16.39 billion on the transaction.
The loss of N16.39$ billion does not necessarily mean the transaction was poorly executed or that FBN Holdings lost money overall; rather, it relates to how the sale price (N35.611 billion) compares to the subsidiary’s carrying value (N52 billion) on the parent company’s books.
An accounting loss on divestment occurs when the Net Consideration (sale price) received from the buyer is less than the Carrying Value (Book Value) of the subsidiary’s assets and liabilities on the seller’s balance sheet.
Despite the accounting loss, the sale is in line with FBN Holdings’ strategy to optimize its portfolio by streamlining operations and focusing capital on the core commercial banking and other high-growth businesses.
FBNQuest Merchant Bank represented less than 5% of FBN Holdings’ overall revenue and assets.
The divestment also aligns with the current regulatory environment, specifically the CBN’s call for financial institutions to recapitalize and streamline their business models, likely reducing the regulatory capital burden on the holding company.
“In line with the Nigerian Exchange Limited (NGX) Rulebook, we wish to inform NGX and the investing public that First HoldCo Plc has successfully completed the full divestment of its 100% ownership in FBNQuest Merchant Bank Limited to EverQuest Acquisition LLP,” First HoldCo said in a notice to investors.
“This transaction has been finalized after obtaining all necessary regulatory approvals from the Central Bank of Nigeria.”
The divestment was finalized as at the end of September 2025 and FBNQuest Merchant Bank ceased to be a subsidiary of First HoldCo Plc.
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