Prime Business Africa
Femi Otedola, the chairman of First HoldCo, has increased his stake in the financial institution from 25.88 percent to 26.17 percent, after raising his shares in the company by 1.17 percent on Thursday.
Otedola acquired 138.04 million shares, valued at N18.11 billion, in First HoldCo on Thursday, a move that increased his shareholding in the company to 11.90 billion shares on August 6, from 11.76 billion shares on July 30.
Join our WhatsApp ChannelThe acquisition, done through his investment vehicle, Calvados Global Services Limited, strengthened Otedola’s control over First HoldCo and took his total investment in the company to N1.66 trillion based on the lender’s closing share price on Friday, from N1.47 trillion as of July 30.
With Otedola’s stake at 26.17 percent, the billionaire is close to reaching the 30 percent stake threshold, which requires the investor to trigger a mandatory takeover of First HoldCo, according to the Investments and Securities Act and the Securities and Exchange Commission (SEC) rules on mergers and acquisitions.
On August 3, Otedola, in an interview, hinted that he will increase his stake in the company above 51 percent, adding that his investment will be long-term.
“My investment threshold is always over and above 51 percent,” he said.
“One of my key investment principles is that firm shareholder control, with due regard for minority interest, is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders.”
According to the SEC acquisition rules, an investor that increases his or her shares to 30 percent is required to acquire the shares of the remaining minority shareholders of the company.
“Where any person, directly or indirectly-
a) acquires shares or an interest in shares, whether by a series of transactions over a period of time or not, which (taken together with shares held or acquired by persons acting in concert with him) carry 30 percent or more of the voting rights of a public company,” the rule said.
“Or b) together with persons acting in concert with him, holds not less than 30% but not more than 50 per cent of the voting rights and such person or any person acting in concert with him, acquires additional shares or an interest in shares, or is interested in additional shares which increase his
percentage of the voting rights of a public quoted company.
“Such person shall make a takeover bid to the holders of any class of equity share capital in the target company through an agent who shall be
a registered Capital Market Operator.”
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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.
