The Oasis Reporters

News on time, everytime

AnalysisBusiness & EconomyNews

Otedola’s 3 Nominees May Emerge First Bank Directors As The Billionaire Investor Becomes Largest Shareholder

The Oasis Reporters

December 12, 2021

First Bank PLC, Femi Otedola.

While the internet was abuzz over who had emerged the largest shareholder of First Bank, billionaire investor, Femi Otedola was quietly revving up his plans to jump ahead the controversy that said no one person can be big enough to control the oldest bank in West Africa.

A letter to the stock exchange from Otedola, announcing his additional acquisition of 7.57% of First Bank PLC shares thereby making him emerge as the largest investor in First Bank based on total issued shares of the company was received on December 9, 2021.

The recent quiet share acquisitions have put him in a position to nominate three directors into the holding company, FBN Holdings.

The disclosure officially makes him the single largest majority shareholder of the bank at least according to the public disclosure of ownership that has now been made.

An estimated 1.1 billion units of FBN Holding shares exchanged in the last 4 days suggesting that the battle for the control of one of the most important banks in Nigeria continues to dominate economic discourse on the Stock Exchange.

Nairametrics reports that the recent purchases were not unconnected with the latest tussle for shares of the bank and believe a statement is imminent in the coming days. According to a reliable source, “an announcement will be made soon that will reveal a significant change in the majority ownership of the bank”.

In the letter seen by Nairametrics, Mr. Otedola acquired the additional shares through his proxies Calvados Global Services, Primrose Global Concept, Shetland Global, Wells Properties, and Impetus Synergy. In a letter addressed to the bank, Mr. Otedola informed the bank that he has now acquired 7.57% ownership in the bank “I have recently acquired additional shares in FBNHoldings Plc (the Company) which has brought my total stake to 7.57% percent of the issued shares capital of the Company”.

Mr Otedola also copied the Securities and Exchange Commission, Nigeria Exchange Ltd, and the Central Bank in the letter.

According to Nairametrics, Mr. Otedola has now spent a whopping N44.8 billion investing in FBN Holdings Ltd. Considering he has just announced 2.7 billion shares, his average cost of acquiring the shares is about N16.48 per share. FBN Holdings’ share price closed at 11.6 per share yesterday.

Economic analysts have continued to speculate on the raison d’être behind Femi Otedola’s move.

About two months ago, the Chief Executive of First Bank PLC, Adesola Kazeem Adeduntan was surprisingly fired by the board while he was believed to be doing well. Barely 24 hours after the sack, Central Bank of Nigeria, the country’s apex bank swiftly reversed the sack by reinstating the Chief Executive/ Managing Director and at the same time, sacking the bank’s board led by Oba Otudeko.

On the heels of that came the tussle that arose over who controls the Tier-1 financial institution. The controversy pitted Femi Otedola on the one hand, and Hassan-Odukale at the other end.

Greg Abolo with
Additional reporting from: Nairametrics

Greg Abolo

Blogger at The Oasis Reporters.

Leave a Reply

Your email address will not be published. Required fields are marked *