FCMB SHAREHOLDERS COUNT REACHES 100,000 AND COUNTING...
Major ownership now in the hands of individual investors and private institutions
The shareholding structure of First City Monument Bank Plc (FCMB), which started as a privately owned merchant bank in 1983, has been widely diversified, with majority ownership now in the hands of individual investors and private institutions (local and foreign). According to a recent statement issued by the bank, FCMB has over 100,000 shareholders after its successful merger and consolidation programme in 2006.
The shareholding structure of the bank currently indicates individual shareholdings of 64.09 percent and institutional/foreign investors’ shareholdings of 32.13 percent. Total State governments’ investment in the bank is limited to 3.79 percent.
In response to the consolidation of the banking industry, FCMB raised additional capital through a successful private placement and subsequent public offer, resulting in significant changes in its shareholding structure. In a three-step process, the bank was also involved in successful mergers with Cooperative Development Bank plc and Nigeria-American Bank Limited, as well as the acquisition of Midas Bank Limited. These mergers and acquisitions further increased the bank’s shareholding base.
In line with its international outlook, FCMB has also recently formed a strategic partnership alliance with Sabre Capital Worldwide – a specialist financial services private equity and management firm, led by experienced and prominent emerging markets bankers. This landmark partnership enables FCMB to take advantage of Sabre Capital’s international relationships in raising additional capital overseas while also making available in the areas of its operations. Sabre Capital also provides support, especially in the areas of consumer banking, operations, customer service, IT and risk management, with the objective of ensuring that FCMB becomes the leading consumer banking franchise in Nigeria while at the same time delivering substantial shareholder value within the next five years.
The Sabre Capital partnership involves prominent international bankers such as Rana Talwar, former Group CEO of Standard Chartered Plc and Vice Chairman, Citigroup Worldwide, Nigel Kenny, former Group Finance Director of Standard Chartered Plc and Harpal S. Randhawa, former Vice Chairman of Seymour Pierce (a London based asset management and investment banking firm).
This arrangement brings a wide range of benefits to FCMB. Firstly, it will expand the bank’s international reach and, through the private equity fund relationship, enhance the opportunity for FCMB to establish a truly pan-African presence. Secondly, Sabre Capital will be represented at a senior level on the board of directors and this will significantly strengthen the bank’s corporate governance. The initiative will also bring significant international talent to FCMB in areas previously underdeveloped in the Nigerian banking environment, such as consumer banking thus further enhancing shareholder value. Sabre Capital’s capacity to raise and provide capital will also further develop the profile of FCMB in the international capital markets.
In a related development, the management of the bank has announced that it is on the point of rolling out new world class consumer products, targeted at changing the face of consumer banking in Nigeria within the next few weeks. This new product offering is tailored to make life easier for all categories of income earners in the country and will include personal loans, payments/transfers, wealth management/insurance and debit/ATM cards which can be used in over 1,150 ATMs on the Interswitch platform, as well as credit cards, both local and international. These services would also include mortgage lending and pension fund management, providing exciting cross selling opportunities to its customers.
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