Revealed: See how Otedola regained his position as First Bank's largest shareholder

2 months ago 29

Nigerian billionaire Femi Otedola has acquired additional shares in FBN Holdings Plc, the parent company of First Bank
Otedola's new shares have strengthened his position as the number one shareholder of the bank ahead of Oba Otudeko
First Bank is one of Nigeria's oldest banks, with a presence in different countries in Africa and outside the continent

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Femi Otedola, the chairman and majority shareholder of First Bank of Nigeria (FBN) Holdings, has acquired an additional N16.02 billion worth of shares in the financial institution.

In a statement published on NGX, the bank said that the Otedola acquisition, comprised of 534,094,407 shares, which was executed between September 23 and 25, 2024.

Femi Otedola shareholder of First Bank of Nigeria

As a result of this transaction, Otedola now holds a total of 4.7 billion (4,721,697,111) shares, increasing his stake in the company to 13.15% from 11.67%.

As of the close of business on Thursday, September 26, the value of 4.7 billion shares is approximately N139.29 billion, based on the closing share price of N29.5

Otedola tightens his grip on first bank

The latest investment from Otedola has widens the gap between him and Barbican Capital Limited, the second-largest stakeholder in FBN Holdings, which possesses an 8.67% stake 3.1 billion (3,110,400,619) shares.

However, the exact holdings of Barbican Capital have come under scrutiny. In a lawsuit filed against FBN Holdings (no. FHC/L/CS/1172/24), Barbican Capital, owned by Oba Otudeko, alleges that it acquired approximately 5,386,397,202 shares, equivalent to 15.1% of FBN Holdings, over various periods.

Barbican Capital contends that its acquisitions and the corresponding issuance dates are well-documented by Meristem Registrar and Probate Service Ltd, the appointed registrars of the financial institution, and acknowledged by the Central Securities Clearing System (CSCS), which oversees the bank's share value and transactions.

In response, FBN Holdings asserted that Barbican Capital only disclosed on July 7, 2023, that it had acquired about 4,770,269,843 shares. However, FBN Holdings stated that the Central Bank of Nigeria (CBN) was only able to validate 3,110,400,619 units of shares, citing insufficient documentation from Barbican Capital.

The Cable reports that the FBNH alleged that Barbican Capital did not provide the necessary documents requested by the CBN during the verification process.