Nigerian investment firm, the Honeywell Group, has taken a significant step towards enhancing its value generation by acquiring additional shares in FBN Holdings Plc, the parent company of Nigeria’s oldest bank, First Bank. Through its affiliate company, Barbican Capital Limited, Honeywell made a strategic investment in FBN Holdings, further solidifying its position in the financial sector.
In a letter addressed to the Chairman of FBN Holdings Plc, the Managing Director of Honeywell Group, Mr. Obafemi Otudeko, highlighted the advantages the Honeywell Group brings to the table, outlining its blueprint and business interests in other sectors of the economy. This move demonstrates the commitment of the Honeywell Group to make FBN Holdings more successful over time.
Through its intervention, Barbican Capital Limited increased its stake in FBN Holdings to an impressive 15.1%. This acquisition marks the largest single transaction of 2023, with Honeywell Group acquiring over 4.7 billion additional shares on July 6, 2023.
Confirming the acquisition, Honeywell Group notified FBN Holdings Plc and regulatory authorities of the purchase of 4,770,269,843 shares by its affiliate company, Barbican Capital Limited. This adds to the previously disclosed interests held by Honeywell Group’s affiliates. The total value of shares purchased by Honeywell Group is estimated to be over N105 billion as of Tuesday.
FBN Holdings’ Company Secretary, Adewale L.O Arogundade, confirmed Honeywell Group’s acquisition of the 4.7 billion units of shares in a notification to the Nigerian Exchange Limited (NGX).
The strategic investment made by Honeywell Group further strengthens its position as a key player in the Nigerian financial sector. The Managing Director of Honeywell Group, Mr. Obafemi Otudeko, emphasized the group’s long-term commitment to investing in businesses with immense growth potential. He expressed a shared vision with FBN Holdings and outlined the group’s deep and longstanding relationship with the institution.
With a diverse senior management team boasting over 150 years of combined experience, the Honeywell Group brings a wealth of knowledge and expertise to its investment activities. The team includes executives with backgrounds in international investment banking, accounting, and legal services, enabling the group to make informed decisions and drive value creation.
Analysts are closely monitoring the bank’s share value in light of these developments, and they await FBN Holdings’ response to the letter or a potential meeting to discuss Honeywell Group’s 15% stake and future plans for the bank and its holding company. The acquisition by Honeywell Group signifies its commitment to contribute to the growth and success of FBN Holdings while strengthening its own position in the Nigerian economy.