Thursday, November 22, 2012 4:57 PM / FirstBank
FirstBank Announces the Adoption of Holding Company Structure and Subsequent Listing of FBN Holdings Plc shares on the NSE
First Bank of Nigeria ("FirstBank" or the "Company" or "Group") announces that, in compliance with regulatory requirements made by the Central Bank of Nigeria, the Company will delist from the Nigerian Stock Exchange ("NSE") after the market closes on Friday, 23 November. The shares will subsequently be replaced by shares of FBN Holdings Plc and will commence trading on the NSE under the new ticker FBNH when the market opens on Monday, 26 November.
The holding company structure was ratified through shareholder votes at the Extraordinary General Meeting held on 24 September 2012 and the relevant approvals have been obtained from the regulatory authorities and the NSE.
The adoption of the holding company structure aligns the ownership and operation of the Bank's subsidiaries and businesses within the current CBN regulatory framework, which require the separation of commercial banking business from other financial services businesses. This structure also creates an operating model to profitably grow the Group's presence in the market for commercial banking and non-banking financial services. In addition, this enables the Group to streamline its businesses by aligning and clustering similar or overlapping businesses under four broad business groups, namely;Commercial Banking,Investment Banking & Asset Management, Insurance and Other Financial Services.
The proposed listing will not alter the current beneficial shareholding structure of the Group. Existing shareholders will surrender their shares in FirstBank in exchange for receiving ordinary shares in FBN Holdings equal to the number of shares held in FirstBank. The issued and fully paid-up share capital of FBN Holdings will be 32,632,084,345 ordinary shares of 50 kobo each (?16,316,042,172.50) which is the same as the current issued and paid-up capital of First Bank of Nigeria Plc.
Commenting on the new ownership structure, FirstBank's GMD, Mr. Bisi Onasanya stated:
"The new structure demonstrates the Group's ambition to be at the forefront of positive corporate governance developments. This structure provides significant benefits to the Group by aligning and clustering similar overlapping businesses as well as streamlining governance controls at the Group level. Ultimately, the holding company structure is designed to enhance the Group's overall competitiveness, and further explore opportunities for synergies between various subsidiaries."
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 Commercial Banking business group has First Bank of Nigeria Limited, FBN Bank (UK) Limited, FBN Bureau de Change Limited, Banque International De Credit (BIC), First Pension Custodian Limited and FBN Mortgages Limited.
 Investment Banking and & Asset Management consist of FBN Capital Limited, First Trustees Nigeria Limited, First Funds Limited, FBN Securities Limited.
 Insurance business group houses FBN Life Assurance Limited and FBN Insurance Brokers Limited
 Other Financial Services has FBN Microfinance Bank Limited.