BY PETER EGWUATU
Cardinal Stone Partners (CSP) Limited has acquired City Securities Registrar following the divestment transaction by First City Monument Bank (FCMB) Plc.
The FCMB divested from the CSL in compliance with the Central Bank of Nigeria (CBN)’s directive on holding company structure.
Until now, CSL was one of the subsidiaries of FCMB. CSP is a full service investment banking firm established in 2008. The transaction was concluded at the end of a competitive bidding exercise that involved CSP and six other bidders.
A statement from FCMB revealed that City Securities Registrars Limited, which is one of Nigeria’s largest independent share registration companies, manages share registers for many of the country’s leading corporate and quoted multinationals and provides access to an investor database in excess of 1.3 million investors. It became a subsidiary of FCMB in 2009.
The Group Managing Director/Chief Executive of FCMB Plc, Mr. Ladi Balogun, explained that the divestment is in compliance with the new banking model introduced by the Central Bank of Nigeria, which requires banks to divest from non-core banking businesses.
The selection of Cardinal Stone as a worthy buyer of our market leading registrar business followed a competitive exercise that sought not only to secure the interests of FCMB shareholders by getting a fair and competitive price for the company, but also find a buyer, who has the credibility, capacity and governance standards that will give CSRL’s clients the necessary comfort.
Balogun went further to say that the sale, as in the case of all six divestments done so far, was arms length and conducted to the highest professional standards, expressing confidence that Cardinal Stone has everything it takes to continue the 36 year unblemished track record of CSL. He added that City Securities (Registrars) Limited will continue to enjoy the bank’s support and patronage considering its pedigree and achievements.