FMDQ to acquire 20% of CSCS

FMDQ Group, Nigeria’s leading market for fixed income securities and forex, and operators of FMDQOTC has reached an agreement to acquire over 20 per cent of CSCS. The value of the transaction is currently undisclosed.

According to sources with knowledge of the transaction, the FMDQ Group will buy out shares owned by Leadway Insurance and from Artemis Ltd a vehicle owned by Verod Capital. The two entities own 16.6 per cent and five per cent respectively delivering a combined 21.6 per cent ownership of CSCS.

The deal is, however, subject to the approval of the Security & Exchange Commission and the Federal Competition and Consumer Protection Commission (FCCPC). Nairametrics understands the transaction is being viewed positively by regulators as it is expected to deepen capital market operations and enhance competition amongst exchanges, with both outcomes viewed as good for consumers and businesses.

Shareholders and investors in CSCS are likely to view the deal as a positive development for the capital market considering the experience and pedigree of a shareholder like FMDQ.

FMDQ acquisition of major shares in CSCS provides the latter with a strong shareholder with enough experience, capacity, and capital to help drive growth in an increasingly changing capital market that requires significant investment in technology and manpower.

Having the FMDQ on board also supports CSCS drive to increase revenues from its core depository, clearing, and settlement business as well as provide it with the right partner in its quest to seek new growth opportunities especially on the enterprise front. CSCS makes most of its money from transaction fees and its depository business.