Prime Business Africa
Femi Otedola, the chairman of First HoldCo, the parent company of First Bank of Nigeria (FBN), has acquired more shares in the financial institution, as the businessman strengthens his control over the company.
Otedola, according to a notification of share dealing by an insider obtained from the Nigerian Exchange (NGX), acquired 147.73 million shares of First HoldCo, on August 14, via his investment vehicle, Calvados Global Services Limited.
Join our WhatsApp ChannelThe shares, worth N20.68 billion, according to Prime Business Africa’s (PBA) analysis, increased his shareholding in First HoldCo to 12.04 billion shares, valued at N1.68 trillion as of Monday.
Prior to the acquisition, Otedola’s investment in the financial institution was valued at N1.66 trillion, representing 11.90 billion shares held as of August 7, a day after he conducted a share acquisition on the NGX.
This is the second acquisition Otedola is performing in August, after acquiring 138.04 million shares, valued at N18.11 billion, on August 6, which took the volume of shares held in First HoldCo to 11.90 billion shares at the time.
Following the recent acquisition, Otedola now holds 26.49 percent stake in First HoldCo — up from the 26.17 percent stake held before the acquisition — which is 24.51 percent below the 51 percent he is targeting.
On August 1, Otedola said he is conducting a long term investment in First HoldCo and plans to raise his controlling stake to 51 percent.
He made the statement following fears over his plans, as the businessman has often sold his stake in companies to invest in another, some of which include Forte Oil, where he sold his shares to invest in Geregu Power
Otedola later sold his shares in Geregu Power to increase his stake in First HoldCo, and since his exit from the former, the share of the power-generating company has depreciated by 27.66 percent.
Also, with Otedola rapidly raising his shares in First HoldCo, his stake is inching closer to the 30 percent threshold that requires an investor to trigger a mandatory takeover of shares of the remaining minority shareholders of the company.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
