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FBN Holdings Plc today, Wednesday, April 15, 2020, notified The Nigerian Stock Exchange, Securities and Exchange Commission, shareholders and the investing public on its divestment from one of its subsidiaries, FBN Insurance Limited (FBNI).
FBNH stated that, in line with its Group strategic objectives, it has commenced discussions with Sanlam (PTY) Limited (the owners of the 35% equity of FBNI) with a view towards selling its 65% holdings to Sanlam.
The Company is currently engaging the regulators on the matter, as it promises further announcement on the progress.
We note that it’s positive news for FBNH shareholders as the insurance subsidiary would be sold at a premium. Hence, we expect the gain from the disposal of the subsidiary, coupled with the recent positive band wagon effect created by news of oil production cut by members of the OPEC and non-OPEC collaborators to support the share price of FBNH in the short term.
Cowry Asset Research