Mr. Ladi Balogun, MD, FCMB
Shareholders of First City Monument Bank Plc (FCMB) Monday approved a holding company (HoldCo) structure for the bank in line with the Central Bank of Nigeria (CBN)’s new banking model.
The approval was given at an extraordinary general meeting held in Lagos. Addressing the shareholders, the Chairman of the bank, Dr. Jonathan Long, said the restructuring would involve the transfer of all permissible non- banking subsidiaries and investments from the bank to the HoldCo and divestment from the non-permissible business lines.
According to him, the companies that would be transferred to HoldCo include: FCMB Capital Markets Limited; CSL Stockbrokers Limited; CSL Trustee Limited; First City Assets Management Limited; Legacy Pension Managers Limited and the bank's investments in Samba and Kili Private Equity funds (managed by Helios Investment Partners).
Long explained that the FCMB would divest from non-permissible subsidiaries including City Securities Registrars Limited and Fin Registrars Limited. He said the two firms would be sold before the end of this month.
Listing the benefits of the new structure, Group Managing Director/Chief Executive Officer of the bank, Mr. Ladi Balogun, said it would enable the group to continue to provide the comprehensive products and services that it was renowned for and also allow the HoldCo to enforce proper governance and risk management across the group without having any direct operational involvement in any of the subsidiaries.
He added that the new structure would lead to more value for shareholders, noting that under the scheme of arrangement, each shareholder of the bank will receive one ordinary share of 50 kobo each in the Holdco which would be credited as fully paid, in exchange for every one ordinary share of 50kobo each held in the bank at terminal date.
First Bank of Nigeria Plc and Stanbic IBTC Bank Plc have similarly adopted HoldCo structures. The HoldCo has already been listed on the Nigerian Stock Exchange (NSE)
Meanwhile, the stock market opened for the week on a positive note as the NSE All-Share Index rose by 0.56 per cent to close at 26,822.09, bringing the growth for the year to 29.38 per cent.