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Tag: FBN Holdings

  • FBN Holdings completes 100% acquisition of Oasis Insurance

    FBN Holdings completes 100% acquisition of Oasis Insurance

    FBN Holdings Plc has concluded the acquisition of the minority shareholdings in Oasis Insurance Plc, making the holding company the wholly owner of the insurance firm.

    FBN Holdings completed the acquisition through FBN Insurance Limited, its insurance subsidiary. Following the completion of the acquisition, Nigerian Stock Exchange (NSE) has delisted Oasis Insurance Plc.

    The Nation had exclusively reported the acquisition of the majority shareholding and takeover bid for the minority shareholdings in Oasis.

    FBN Insurance Limited had acquired 71.2 per cent equity interest in Oasis Insurance through a block divestment in February 2014.

    FBN Insurance subsequently launched a mandatory takeover bid for the remaining 28.8 per cent equity interest in Oasis Insurance in line with the rules of the Securities & Exchange Commission (SEC).

    Regulatory filing indicated that by the close of the takeover bid on 31 July 2014, FBN Insurance Limited received a total of 1,289,493,953 ordinary shares bringing its shareholding in Oasis Insurance to approximately 91.1 per cent. FBN Insurance Limited elected to exercise its rights under Section 146(2) of the Investments and Securities Act to compulsorily acquire shares belonging to the minority shareholders having crossed the 90 per cent threshold. At the end of the 20-day statutory notice period FBN Insurance Limited increased its holdings by an additional 22,603,617 shares bringing its holdings in Oasis Insurance Plc to approximately 91.4 per cent.

    FBN Insurance Limited thereafter transferred the sum of N310,649,730 to FBN Registrars as consideration for the outstanding 560,808,895 shares or 8.6% per cent. FBN Registrars will keep the fund in trust for shareholders who are yet to tender their share certificates. By this action, FBN Insurance Limited now holds 100 per cent equity interest in Oasis Insurance Plc.

    The NSE yesterday confirmed the transaction, noting that Oasis Insurance requested for voluntary delisting after the full acquisition.

  • FBN Holdings acquires Oasis Insurance

    FBN Holdings acquires Oasis Insurance

    •NSE delists Oasis Insurance

    FBN Holdings Plc has concluded the acquisition of the minority shareholdings in Oasis Insurance Plc, making the holding company the wholly owner of the insurance firm.

    FBN Holdings completed the acquisition through FBN Insurance Limited, its insurance subsidiary. Following the completion of the acquisition, Nigerian Stock Exchange (NSE) has delisted Oasis Insurance Plc.

    The Nation had exclusively reported the acquisition of the majority shareholding and takeover bid for the minority shareholdings in Oasis.

    FBN Insurance Limited had acquired 71.2 per cent equity interest in Oasis Insurance through a block divestment in February 2014.

    FBN Insurance subsequently launched a mandatory takeover bid for the remaining 28.8 per cent equity interest in Oasis Insurance in line with the rules of the Securities & Exchange Commission (SEC).

    Regulatory filing indicated that by the close of the takeover bid on 31 July 2014, FBN Insurance Limited received a total of 1,289,493,953 ordinary shares bringing its shareholding in Oasis Insurance to approximately 91.1 per cent. FBN Insurance Limited elected to exercise its rights under Section 146(2) of the Investments and Securities Act to compulsorily acquire shares belonging to the minority shareholders having crossed the 90 per cent threshold. At the end of the 20-day statutory notice period FBN Insurance Limited increased its holdings by an additional 22,603,617 shares bringing its holdings in Oasis Insurance Plc to approximately 91.4 per cent.

    FBN Insurance Limited thereafter transferred the sum of N310,649,730 to FBN Registrars as consideration for the outstanding 560,808,895 shares or 8.6% per cent. FBN Registrars will keep the fund in trust for shareholders who are yet to tender their share certificates. By this action, FBN Insurance Limited now holds 100 per cent equity interest in Oasis Insurance Plc.

    The NSE yesterday confirmed the transaction, noting that Oasis Insurance requested for voluntary delisting after the full acquisition.

  • Banks may raise $2.5b in bonds

    Banks may raise about $2.5 billion this year, compared with the $2 billion they raised in 2013, according to FBN Capital, the investment-banking unit of FBN Holdings Plc.

    Analysts said international debt sales are becoming common as yields on Nigerian Eurobonds due in July, 2023, declined 96 basis points this year. That compares with an average of 35 basis-point drop in emerging-market yields, according to Bloomberg indexes.

    The Central Bank of Nigeria (CBN) in August changed the way lenders calculate capital buffers. The regulator ordered banks it considered too big to fail to boost minimum capital ratios to 16 per cent last year, compared with 10.5 per cent for South African lenders, which control most of the continent’s banking assets.

    “Capital adequacy for many of the banks will be close to the minimum” once the changes are taken into account, Mike Nwanolue, an analyst at Lagos-based Greenwich Trust Group Ltd. told Bloomberg.

    The CBN removed some assets lenders can count as capital in preparation for the implementation of Basel II and III, while limiting Tier 2 capital to 33 percent of Tier 1 capital, according to an August 5 circular from the regulator.

    Minimum capital requirements for lenders with operations outside the country was kept at 15 percent and at 10 percent for those with interests only in Nigeria.

    The changes will shave 100 to 400 basis points off the capital adequacy ratios of most banks, Adesoji Solanke, an analyst at Renaissance Capital in Lagos, said.

  • FBN Holdings grosses N212b in first half

    FBN Holdings grosses N212b in first half

    FBN Holdings Plc, the holding company for First Bank of Nigeria (FBN) Limited and its previous subsidiaries, grew its top-line by 7.9 per cent to N212 billion in the first half of this year.

    Interim report and accounts of FBN Holdings for the period ended June 30, 2014 released yesterday showed that gross earnings rose by 7.9 per cent to N212 billion in first half 2014 as against N196.4 billion recorded in comparable period of 2013. The top-line showed mixed performance from the interest and non-interest incomes. Net interest income inched up by 2.2 per cent to N115.2 billion compared with N112.7 billion in first half 2013. Non-interest income was flat at N43.2billion as against N43.3 billion in 2013. Operating income rose marginally by 1.5 per cent from N155.5 billion to N157.8billion.

    While impairment charge for credit losses dropped by 33 per cent to N6.7 billion in 2014 from N9.9 billion in 2013, operating expenses increased by 14.3 per cent to N102.9 billion as against N90.0 billion. Profit before tax thus dropped by 12 per cent to N48.3 billion in first half 2014 as against N54.8 billion in first half 2013. Profit after tax also dropped by 19 per cent from N46.1 billion to N37.2 billion.

    Further analysis showed that the company’s total assets closed first half at N4.0 trillion, up by 3.4 per cent from N3.9trillion recorded by December 2013. Customer deposits however dropped by 5.9 per cent to N2.8 trillion as against N2.9 trillion recorded in December 2013. Customer loans and advances stood at N1.8 trillion in first half 2014 as against N1.7 trillion by December 2013.

    Key fundamental indices underlined the depressed bottom-line.         Return on average equity dropped to 15.7 per cent in 2014 as against 20.6 per cent in first half 2013. Net interest margin dropped from 8.2 per cent to 7.4 per cent. Cost to income ratio stood at 65.2 per cent as against 57.9 per cent. Non-performing loans ratio stood at 3.0 per cent as against 3.8 per cent in comparable period of 2013.

    Chief executive officer, FBN Holdings Plc, Bello Maccido, said the performance of the company during the period showed its resilience in view of the tough operating environment and regulatory headwinds.

    According to him, the company has continued to implement measures to ensure improved performance with a review of the current business model of its commercial banking business group and the investment banking and asset management business in the coming period.

  • FBN Holdings rolls out 1.87b shares in Oasis Insurance takeover bid

    FBN Holdings rolls out 1.87b shares in Oasis Insurance takeover bid

    FBN Holdings has activated its billion-naira takeover bid for minority shareholdings in Oasis Insurance Plc.

    FBN Holdings is making the takeover bid through FBN Life Assurance Limited, an insurance subsidiary of FBN Holdings.

    Under the plan, FBN Assurance is making a mandatory takeover of 1.87 billion ordinary shares of 50 kobo of Oasis Insurance currently held by minority shareholders.

    A declaratory report on the takeover obtained yesterday by The Nation indicated that acceptance list will now open on July 7 and close on July 28, 2014. The qualification date for the offer was July 1, 2014 as a result of the T+3 trading cycle at the Nigerian Stock Exchange (NSE).

    According to the report, shareholders of Oasis Insurance Plc whose names appeared on the register of members of Oasis maintained by First Registrars on 31 December, 2013 and are eligible to participate in the offer should indicate by filling the necessary documents.

    Such shareholders who wish to tender some or all of the ordinary shares registered in their name would have to complete the acceptance form, together with valid share certificate, which should be stamped and signed by their stockbrokers and then submitted to First Registrars, not later than 4pm on July 7, 2014.

    However, qualified shareholders who hold their shares in Central Securities Clearing System (CSCS) and who wish to participate in the offer should complete the acceptance form contained in the take-over bid document in accordance with the instructions printed thereon. The completed acceptance form, which should be stamped and signed by their stockbrokers with their statement of CSCS account, should be submitted to First Registrars, not later than 4pm on July 28, 2014

    FBN Holdings, through FBN Assurance, had acquired the majority equity stake in Oasis Insurance. It had acquired about 4.63 billion ordinary shares of 50 kobo each of Oasis Insurance from the previous core investors-Oasis Group Limited and MetroWest Investments Limited.

    The sale transferred the majority 71.2 per cent equity stake in Oasis Insurance to FBN Life Assurance. The acquisition was effected through the execution of a share sale and purchase agreement between the parties following receipt of the requisite regulatory approvals from the National Insurance Commission (NAICOM), Securities & Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Oasis is quoted on the NSE.

    With the acquisition of 71.2 per cent, FBN Life was required to make a mandatory take-over bid to the remaining shareholders of Oasis insurance in line with section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC’s Rules and Regulations. The takeover bid could however make Oasis Insurance, a publicly quoted insurance firm, a wholly-owned subsidiary of the group.

    The acquisition would enable the FBN Holdings to deepen its insurance business as FBN Life seeks to harness Oasis Insurance’s relative strengths, thereby creating synergies for the development of the insurance business.

    Oasis Insurance is expected to leverage FBN Holdings’ wide network, including the international spread of its flagship-First Bank of Nigeria Limited, to expand its coverage of the Nigerian general insurance market through cross-selling of products on First Bank’s network.

  • FirstBank raises $300m from international markets

    FBN Holdings Plc has announced that its commercial banking subsidiary, First Bank of Nigeria Ltd. (FirstBank), has concluded a debt capital raising exercise in the international markets through a US $300 million subordinated Tier 2 transaction.

    FBN Holdings, which offers a broad range of products and services across commercial banking, investment banking, insurance and microfinance business in seven countries, said the proceeds from the capital raising would be used by First Bank for general banking purposes.

    According to a statement from the bank, the institution has chosen this route to ensure that it remains well capitalised with an improved total capital adequacy ratio (CAR) of 22.5per cent up from 20.1per cent as at the end of March 2013, and supports loan growth over the near term which is in line with FirstBank’s capital management strategy .

    In addition, the transaction further diversifies and extends the maturity of the Bank’s foreign currency funding.

    The Tier 2 capital transaction, the bank explained has a seven-year maturity and is callable on the 5th anniversary of the issuance date, even as the issue carries an initial coupon of 8.250 per cent on the nominal par amount, which resets at the call date to a new fixed rate (no step-up) until maturity.

    It added that the Tier 2 capital treatment amortises over the last five years prior to maturity.

    The successful offering was achieved within the context of volatile debt capital markets, especially for emerging market borrowers.

    This transaction is FirstBank’s second Tier 2 capital raise, following on its debut 2007 US $175 million Tier 2 capital raise which carried a 9.750 per cent coupon rate and which was called by the institution in 2012.

    ‘This makes FirstBank the only Nigerian banking institution to carry out not only one, but two consecutive subordinated Tier 2 capital raising transactions in the international debt markets.”

    FBN Capital, the investment banking and asset management subsidiary of FBN Holdings Plc, served as financial advisers with Citigroup and Goldman Sachs International also acting as advisers and Joint Lead Managers to FirstBank on the transaction.