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

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!

Olori Uwem

Member
Mar 18, 2024
146
7
18
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.