FBN Holdings acquires Kakawa Discount House

Semiu Salami
Semiu Salami

FBN Holdings Plc along with FBN Capital Limited has completed the acquisition of a 54 per cent equity interest in Kakawa Discount House Limited.

With the new arrangement, FBN Holdings now becomes the beneficial owner of 100 per cent share capital of Kakawa Discount House Limited.

The bank said in a statement that the acquisition represents a strategic fit for the FBN Holdings portfolio, as it will expand the universe of products and services offered by the Group, and enable it to not only deepen its reach to existing clients, but reach a new client base.

“Kakawa brings on board a strong fixed income origination and distribution franchise which can be further leveraged through FBN Holdings’ existing infrastructure,” the statement said.

Group Chief Executive Officer of FBN Holdings, Bello Maccido said that the “acquisition marks a natural progression of the long standing and intertwined history between FBN Holdings and Kakawa.

“It is also in line with management’s commitment to diversify the revenue streams, enhance contributions from the non-banking subsidiaries leverage cross-selling across the Group and ultimately drive shareholder value over the long term.‛

Kakawa Discount House Limited was incorporated in 1995 following the issuance of the regulations enabling consortium of banks to establish discount houses in Nigeria.

Kakawa was formed by a consortium of eight banks, led by First Bank of Nigeria Limited, with principal activity including trading in, holding and providing discount and rediscount facilities for treasury bills, commercial and other eligible financial instruments normally purchased by banks, corporate bodies and the investing public.

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