The acquisition of 15.1 per cent equity stake and its attendant injection of N4.7 billion into First Bank of Nigeria Holding (FBNH) by Honeywell Group Limited (HGL) and affiliate, Barbican Capital Limited, has been adjudged a big boost to the banking sector.
In the wake of the acquisition FBNH witnessed a surge in its market capitalisation, its value rose from N612 billion to N728.67 billion within the first week, while the stock price saw a staggering 19 per cent increase.
This, perhaps, has made shareholders welcome the development, noting that Honeywell’s additional investment is likely to create more value by unlocking hidden potential in FirstBank, the commercial banking subsidiary of FBNH.
Weighing on this, ar shareholder, Mr. Tunde Oyediran said: “Honeywell Group’s increased stake in FBNH will be beneficial to the shareholders. The banking sector’s improved performance will benefit Honeywell and spill down to shareholders. I expect the shareholders to mandate the board for strong efficiency”.
Meanwhile, both HGL and Barbican Capital have been charged to join hands with other FBNH big investors and bring out the best from the entity for the benefits of all stakeholders. According to a shareholder, Mr Moses Igbrude, “Honeywell is a shareholder among other shareholders, their interest should not be different from other shareholders’ interest which is shareholders’ values, good dividends, price appreciations and any intrinsic value and these values can only come through hard work and dedication to duty by all FBNH’ stakeholders, hence the need for unity of purpose.”
He added: “My appeal to the big investors is for them to work together, with good understanding and intention of bringing the best out of FBN Holdings Plc for benefits of all stakeholders.”
The former general secretary of Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, in the HGL statement, said, “Our market is based on the principle of free market. The market is open to everybody. There are no entry or exit barriers. And there are no limits or ceiling to percentage ownership. Shareholding of public companies is not an exclusive right of anyone. We are all co-owners of the business. We welcome anyone who joins the family of FBNH via shareholding irrespective of the volume or percentage of shareholding.”The strategic investment of HGL, through Barbican, involved the acquisition of N4.7 billion FBNH shares, propelling HGL to become the largest shareholder in the entity. This market progression has sparked an unending debate about the actual value of the strategic investment in FBN Holdings and its stakeholders in the long run.
Meanwhile, FBNH witnessed a surge in its market capitalization after Barbican Capital’s purchase of the stakes. The company’s value rose from N612 billion to N728.67 billion within the first week, while the stock price saw a staggering 19 per cent increase.
This, perhaps, has made shareholders welcome the development, noting that Honeywell’s additional investment is likely to create more value by unlocking hidden potential in FirstBank, the commercial banking subsidiary of FBNH.
SOURCE: THESUN
