First City Monument Bank has divested itself of City Securities Registrars Limited, a statement from the bank said on Tuesday.

According to the bank, the move was in line with the holding company structure.

Following the divestment, the bank said City Securities Registrars Limited had been wholly acquired by CardinalStone Partners Limited, a full service investment banking firm.

The statement explained that the transaction was concluded at the end of a competitive bidding exercise that involved CSP and six other bidders.

The statement explained that City Securities, an independent share registration company, which manages share registers for several corporate and quoted multinationals and provides access to an investor database in excess of 1,300,000 investors, had become a subsidiary of FCMB in 2009.

However, the move became necessary following the introduction of a new banking model by the Central Bank of Nigeria, which required banks to divest from non-core banking businesses.

The Group Managing Director, FCMB Plc, Mr. Ladi Balogun,was quoted as saying that the divestment was in compliance with the new banking model.

He added,“The selection of CardinalStone 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 explained that the sale, as was “the case of all six divestments done so far was conducted to the highest professional standards.”

He said he was confident that CardinalStone had everything required to manage CSRL effectively, adding that the independent share registration company would continue to enjoy the bank’s support and patronage considering its pedigree and achievements.

The Chief Executive Officer,CardinalStone, Mr. Femi Ogunjimi, was quoted as saying he was delighted at his company’s acquisition of CSRL. He said the development would further position CardinalStone“as a trusted financial advisor and principal of choice to our clients in their investments and businesses”.

He added that CSRL’s management team, which had Mrs.Motunde Dada as Managing Director would be retained, “given their proven track record, and to ensure seamless transition of ownership”.

Source: Punch (by Simon Ejembi)