OTEDOLA REGAINS POSITION AS FIRST BANK’s MAJORITY SHAREHOLDER, INCREASES STAKE TO 9.41%

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Olori Uwem

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Mar 18, 2024
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OTEDOLA REGAINS POSITION AS FIRST BANK’s MAJORITY SHAREHOLDER, INCREASES STAKE TO 9.41%

Nigerian billionaire Femi Otedola, Chairman of FBN Holdings, has reclaimed his status as the majority shareholder of First Bank. Otedola now holds a 9.41% stake in the bank following a significant acquisition of shares on June 20.

Key Acquisitions:
- Direct Acquisition: Otedola acquired 316,506,776 shares at NGN 21.91 each, totaling NGN 6.935 billion.
- Through Calvados Global Services Limited: He acquired 546,674,034 shares at NGN 21.97 each, totaling NGN 12.01 billion.

Total Acquisition:
- Shares: 863,180,810
- Amount: NGN 18.9 billion
- Increase in Stake: 2.40%, bringing his total stake to 9.41%.

Background:
- Initial Stake: Otedola began his journey toward majority ownership in October 2021 with a 5.07% stake.
- Subsequent Increases: By December 2021, he had increased his stake to 7.57%. Mid-2022 saw a reduction to 5.24% due to divestment.
- Competitor: In July 2023, Oba Otudeko, through Barbican Capital Limited, announced a 13.3% stake, later verified to be 8.67% by the end of the financial year.

Current Status:
- Majority Shareholder: Otedola’s current 9.41% stake positions him as the majority shareholder.
- Influence: As Chairman since January 2024, Otedola now has significant control over FBN Holdings.

Market Impact:
- Trading Volume: Otedola’s acquisition represented 99% of FBN Holdings’ turnover volume of 871.084 million shares on the NGX on June 20.
- Share Price: FBN Holdings’ share price closed at NGN 21.9, down 0.45%.

Significance:
- Other Holdings: In addition to FBN Holdings, Otedola holds the majority shareholding in Geregu Power Plc.
- Comparison: Otedola's individual shareholding is the second largest in any publicly listed bank in Nigeria, surpassed only by Jim Ovia’s 11.29% stake in Zenith Bank.