AMCON Divests over N1.1bn Fidelity Bank shares in Landmark Off-Market Deal
In a major shake-up within Nigeria’s banking sector, the Asset Management Corporation of Nigeria (AMCON) on Friday, July 18, 2025, divested a significant portion of its equity stake in Fidelity Bank Plc, transferring ownership of 1,140,866,892 shares through a negotiated off-market transaction.
The block sale, executed in nine negotiated deals, was facilitated by Apel Asset Management Ltd and CardinalStone Securities Ltd, both acting as deal intermediaries.
Terms of the transaction were yet to be disclosed as the Nigerian Exchange Group (NGX) and Fidelity Bank have yet to issue formal statements regarding the transaction.
However, it was gathered that the buyer is a high-profile oil and gas security entrepreneur operating out of the Niger Delta, fuelling speculation of a strategic play within Nigeria’s increasingly dynamic financial services space.
Capital market community are closely observing the unfolding events around the transactions, particularly given AMCON’s long-standing role as a systemic stabiliser following its post-2009 intervention in the sector.
The sheer size of the divestment—representing a substantial block of ownership in the tier-2 lender—has ignited speculation over a potential broader exit strategy by AMCON.
The corporation, which has historically maintained significant holdings in distressed financial institutions, may be recalibrating its portfolio amid ongoing efforts to reduce its footprint in the banking industry.
Despite the magnitude of the deal, Fidelity Bank’s share price dipped slightly in Friday’s session, closing at ₦21.10—down 2.1% from its previous close of ₦21.55.
Nevertheless, some stockbrokers expressed bullish sentiments about the stock, looking to see the price accelerate to a new high citing very recent impact of First HoldCo block transactions that saw the stock rise by 20% in 24 hours after the historic negotiated deal.
Still, the stock has delivered a year-to-date return of 20.6%, reflecting continued investor confidence in its underlying fundamentals.
Indeed, Fidelity Bank has emerged as one of the NGX’s most active counters in recent quarters. Between April 11 and July 17, 2025, over 4.01 billion units of its shares were exchanged across 41,535 deals, amassing a total market value of ₦77.8 billion.
The AMCON divestment comes in the wake of another seismic off-market transaction earlier this week involving over 10.4 billion shares of First HoldCo, formerly FBN Holdings Plc, valued at ₦323.4 billion. Together, these trades underscore a period of accelerated strategic repositioning across Nigeria’s banking ecosystem.
Fidelity Bank’s appeal to institutional investors has been further bolstered by its stellar financial performance. In Q1 2025, the bank reported a pre-tax profit of ₦107.77 billion—a 167.8% increase year-on-year. Gross earnings also rose by 64.2% to ₦315.42 billion, buoyed by strong balance sheet growth and operational efficiency.
Crucially, the bank has distinguished itself as the first to complete a capital-raise programme under the Central Bank of Nigeria’s (CBN) new recapitalisation directive.
According to Managing Director Nneka Onyeali-Ikpe, the bank surpassed its ₦127.1 billion initial capital target through a combined offer of 21.4 billion shares—15 billion via rights issue and 6.4 billion via public offer.
“This level of investor confidence is both gratifying and humbling,” Onyeali-Ikpe stated in a letter to shareholders.
With this successful capital raise, Fidelity Bank is now poised to join the ranks of Nigeria’s elite tier-one lenders—an evolution that could significantly reshape its ownership structure and long-term strategic trajectory.