Experts Weigh in On Honeywell Group’s First Bank Holdings Shares

In the wake of Honeywell Group Limited (HGL) and it’s affiliates’ acquisition of a 15.1% majority stake in FBN Holdings (FBNH), shareholders and market analysts have continued to weigh in on the future prospects of both entities.

The strategic investment made by Honeywell Group through its affiliate company, Barbican Capital Limited, involved the acquisition of ₦4.7 billion shares of FBN Holdings, propelling HGL to become the largest shareholder in the company.

This market progression has sparked an unending debate about the actual value of the strategic investment in FBN Holdings and its stakeholders in the long run.

Meanwhile, FBNH witnessed an instantaneous surge in its market capitalisation after Babrican Capital’s purchase of additional stakes.

The company’s value rose from ₦612 billion to an impressive ₦728.67 billion within the first week, while the stock price saw a staggering 19% increase that left some investors in awe.

For many others, it was hardly surprising. Honeywell Group has been at the helm of different successful businesses over the years, from the power sector to the hospitality industries, creating value and boosting the country’s economy.

Notable milestone investments include Airtel Nigeria, Fan Milk Nigeria Plc, and Honeywell Flour Mills Plc, all of which have contributed significantly to the country’s economic growth.

All of these, perhaps, have made shareholders welcome the development, noting that Honeywell’s additional investment is likely to create more value by unlocking hidden potential in FirstBank, the commercial banking subsidiary of FBNH.

On his part, a shareholder, Mr. Tunde Oyediran said: “Honeywell Group’s increased stake in FBNH will be beneficial to the shareholders. The banking sector’s improved performance will benefit Honeywell and spilled down to shareholders. I expect the shareholders to mandate the board for strong efficiency.”

The former general secretary of Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, reiterated that, “Our market is based on the principle of free market. The market is open to everybody. There is no entry or exit barriers. And there are no limits or ceiling to percentage ownership. Shareholding of public companies is not an exclusive right of anyone. We are all co-owners of the business. We welcome anyone who joins the family of FBNH via shareholding irrespective of the volume or percentage of shareholding.”

He continues that, “Shareholding is the most democratic institution – each share carries a vote and each share earns the same dividend. So, you vote according to your holding and you earn according to your holding. Everybody benefits according to his/her holding. Shareholders’ expectation generally is that their companies are well managed profitably.”

Similarly, the National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, said: “Honeywell is a shareholder among other shareholders, their interest should not be different from other shareholders’ interest which is shareholders values, good dividends, price appreciations and any intrinsic value and these values can only come through hard work and dedication to duty by all FBN holdings’ stakeholders, hence the need for unity of purpose.”

“My appeal to the big investors is for them to work together, with good understanding and intention of bringing the best out of FBN Holdings Plc for benefit of all stakeholders.”

As the acquisition continues to elicit reactions, both Honeywell and FBNH shareholders as well as market analysts remain keenly watchful of the outcome and its potential positive impact on their respective investments and the financial market.