Wednesday , June 12 2024
Leadership Tussel: Otedola Acquires More Shares with Over N2 Billion

Leadership Tussel: Otedola Acquires More Shares with Over N2 Billion

Femi Otedola, has acquired 110 million units of the bank’s shares worth N2 billion in a fresh deal. The units represent 0.3 per cent of the bank’s entire shares of 35,895,292,792.

This was after Otedola had offloaded about 834 million shares of First Bank of Nigeria Holdings valued at about N9.28 billion, an acquisition that made him the largest single shareholder of the bank as of June, 2023

The sale came after a protracted boardroom tussle over who owns the largest shares of the company. The confusion compelled the Nigerian Exchange to wade in and clarify issues regarding ownership. The audited accounts of the banks within the period placed the billionaire at 7.57 per cent ownership.

In another development, news broke last month that the chairman, Honeywell Group, Oba Otudeko, consolidated his shareholding as the largest shareholder with the acquisition of 4,770,269,843 units of shares through Barbican Capital Limited, an affiliate of Honeywell Group Limited, representing 13.3 per cent of its 35,895,292,791 outstanding shares of FBN Holdings.

A notification issued by First Bank Holdings, the parent company of First Bank Nigeria Limited, to its stakeholders, signed by the acting company secretary, Adewale Arogundade, confirmed that Otudeko’s Barbican Capital Limited acquired an aggregate of 4,770,269,843 units of shares from the company’s issued share capital of 35,895,292,791.

Yesterday, strong indications emerged that Otedola made a fresh acquisition move with the purchase of 110 million units of shares, valued at N2,090,000,000, representing 0.3 per cent of the bank’s outstanding shares.

Also Read: First Bank Holding Announces Femi Otedola as Board Director to Shareholders

The Guardian also reported that a source close said: “Otedola bought 110 million units of FBNH today (yesterday). The battle for control over the institution is not over. The volume represents 0.3 per cent of FBNH shares. It just signals that he is still trying to fight it out with Oba Otudeko for control. The company has made up its mind to raise N150 billion via rights issue at roughly N16 per share. Whosoever is capable of taking the rights will become the chairman.

Also, the chairman of Highcap Securities Limited, David Adonri said: “Volume and value of shares purchased today by Otedola are 110 million units, N2,090,000,000 out of the bank’s outstanding shares of 35,895,292,792. The huge volume purchased by Otedola today drove the price of FBNH up to make a maximum gain of 10 per cent. Perhaps, Otedola is positioning to dominate the upcoming Rights Issue of FBNH.”

The deal impacted significantly the volume of shares traded yesterday, which increased by 123.16 million, representing 51.73 per cent, as investors traded 361.197 million shares valued at N5.743 billion in 5531 deals against 238.039 million shares worth N2.616 billion that was exchanged in 6,001 deals on Wednesday.

Additionally, transactions in shares of the bank led market activities yesterday with 140.179 million shares valued at N2.608 billion in 280 deals. The stock price of the bank also rose by N1.30 kobo, representing a 7.34 per cent gain to close at N19 from N17.70 kobo at which it opened for transactions yesterday.


About Bukola Olanrewaju

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