FBN Holdings Plc together with its wholly-owned subsidiary, FBN Capital Limited, has completed the acquisition of a 54 percent equity interest in Kakawa Discount House Limited.
Consequently, FBN Holdings is now the beneficial owner of 100 percent share capital of Kakawa Discount House Limited.
This acquisition represents a strategic fit for the FBN Holdings portfolio.
In a statement, FBN Holdings Plc said the acquisition will expand the universe of products and services offered by the group, and “enable us to not only deepen our reach to existing clients, but reach a new client base.”
Kakawa brings on board a strong fixed income origination and distribution franchise which can be further leveraged through FBN Holdings’ existing infrastructure, it said.
Commenting on the transaction, Bello Maccido, group chief executive officer, FBN Holdings, remarked, “This acquisition marks a natural progression of the long standing and intertwined history between FBN Holdings and Kakawa. It is also in line with management’s commitment to diversify the revenue streams, enhance contributions from the non-banking subsidiaries leverage cross-selling across the group and ultimately drive shareholder value over the long term.”
Kakawa Discount House Limited was incorporated in 1995 following the issuance of the regulations enabling consortium of banks to establish discount houses in Nigeria.
Accordingly, Kakawa was formed by a consortium of eight banks led by First Bank of Nigeria Limited.
The company’s principal activity includes trading in, holding and providing discount and rediscount facilities for treasury bills, commercial and other eligible financial instruments normally purchased by banks, corporate bodies and the investing public. Kakawa’s business also includes advisory services, institutional investment management and wealth management.
Source : BusinessDay