Prime Business AfricaSince Oba Otudeko, the former chairman of First HoldCo and second-largest investor, exited the company unceremoniously, the financial institution’s share value has depreciated by N2.9 kobo, erasing N121.44 billion from shareholders’ investment value.
Reports had circulated on July 17 that Otudeko had sold his 6.31 billion shares, held through Barbican Capital Limited, representing 15.08 percent, on July 16.
Join our WhatsApp ChannelAlso, Tunde Hassan-Odukale, another major investor in First HoldCo, sold his 2.28 billion shares in First HoldCo within the same period.
Prior to selling their shares in First HoldCo, Otudeko and Hassan-Odukale had separately had a leadership tussle with Femi Otedola, the current chairman and majority investor of the financial institution.
Over a month since their exit, the investment value of shareholders in First HoldCo has dropped by 8.19 percent, representing a combined loss of N121.44 billion, according to Prime Business Africa’s analysis.
Out of the combined loss, Otedola accounts for N19.36 billion, which represents 15.94 percent, while other shareholders of the financial institution account for N102.08 billion within five weeks.
Further analysis of Otedola’s loss showed that the value of his investment in First HoldCo depreciated from N236.38 billion on July 17 to N217.02 billion as of August 22.
Note that Otedola holds a total shareholding of 6.67 billion, split into 3.21 billion direct shares and 3.46 billion indirect shares, representing a 15.95 percent controlling stake in the parent company of First Bank of Nigeria (FBN).
The value of the direct shares dropped from N113.70 billion to N104.39 billion within the period under review, and that of the indirect shares fell from N122.68 billion to N112.63 billion, bringing the total loss recorded by Otedola to N19.36 billion.
Also, Prime Business Africa’s analysis showed that First HoldCo’s market valuation was affected, as the lender’s bourse capitalisation depreciated from N1.48 billion on July 17 to N1.36 billion on August 22.
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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.
