The Honeywell Group has said that its additional investment in FBN Holdings Plc is aimed at creating more value for all shareholders by unlocking hidden values in the FirstBank, the commercial banking subsidiary of the company.
Honeywell Group recently announced its acquisition of an additional equity of almost five billion shares of First Bank Nigeria through its affiliate company, Barbican Capital Limited.
The acquisition by the Obafemi Otudeko-led investment company makes it the largest shareholder in FBN with a total stake of 15.1%.
Since the announcement, financial and stock market experts have predicted a rise in stock for shareholders in Honeywell Group in the coming months.
These early predictions are reflected in the N116.6 billion upshot in market capitalisation of FBN Holdings Plc from N612 billion to N728.67 billion when its stock price closed last week Friday.
Similarly, the price per share of FBN Holdings has reached an impressive milestone following the announcement. At N20.3, the share price not only marked the highest price for the year but also achieved an all-time record since its establishment as a Holdings company.
In a letter to the Chairman of FBNH, the Managing Director of Honeywell Group, Obafemi Otudeko, reintroduced the company: “Honeywell Group Limited (HGL) is a dedicated long-term investor committed to investing in great businesses with immense growth potential. Our approach involves working closely with stakeholders with a shared vision to foster the creation and enhancement of value for all.
“We understand that this requires time and patience. Our intention is to follow this approach in respect of our investment in FBN Holdings, an iconic institution which we greatly respect and with which we have a deep and long-term relationship, as customers, investors, and board members.”
And then reiterated the company’s intention – “to work with all stakeholders to create value for all shareholders.
“We enjoy long-standing personal relationships with the company’s other key shareholders, and we look forward to leveraging these relationships as we collectively work towards enhancing the value of FBN Holdings Plc.”
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