It’s Pleasurable: Otedola emerges First Bank’s majority shareholder


The Nigerian billionaire, Femi Otedola, has emerged a fundamental shareholder of First Bank Holdings, owners of First Bank Nigeria, after buying a 5.07 per cent fairness stake, the firm confirmed Saturday.

The keeping firm had earlier denied knowledge of the takeover announcing it had now no longer bought a notification of a fundamental keeping by Mr Otedola.

In a apply-up verbal exchange to the Nigerian Replace Miniature Saturday, the firm acknowledged it bought notification from APT Securities and Funds Miniature that its client, “that Mr Otedola Olufemi Peter and his nominee, Calvados Global Products and services Miniature have bought a whole of 1,818, 551,625 devices of shares from the Company’s issued share capital of 35,895,292791.”

“In step with the foregoing, the fairness stake of Mr Otedola Olufemi Peter and his nominee within the firm is now 5.07%,” the distinction signed by Seye Kosoko, firm secretary, acknowledged.

With that verbal exchange, Mr Otedola turns into the bank’s single greatest shareholder on file.

The bank had in its 2020 annual document and accounts stated that “In accordance with Register of People as at December 30, 2020, there just isn’t at all times a shareholder with 5% of the shares of FBN Holdings Plc.”

Here’s the first time since that reporting that the bank is informing the Nigerian Replace of a substantial acquisition of shares that has thrown up an individual with 5 percent fundamental slice of the firm.

In the 10 days to Friday, FBN Holdings witnessed an surprisingly massive trading in its shares and the cumulative sequence of devices traded internal the duration surpassed 2.1 billion. The uptick in trading catapulted its share cost by 62.3 per cent from the diploma it change into three weeks ago.

An analyst at Meristem Securities instructed PREMIUM TIMES the trading thunder started with a switch by Airtel Africa to sign a minority stake in Airtel Nigeria.

“There had been a whole bunch activities on FBN Holdings shares over the past two or three weeks now,” he acknowledged on situation of anonymity thanks to the sensitive nature of the subject.

“In the origin it change into Airtel. Airtel Africa change into attempting to sign minority stake in Airtel Nigeria. Airtel Africa is listed nonetheless Airtel Nigeria is now no longer listed. In say that they are attempting to sign the final eight per cent minority stake in Airtel Nigeria.”

ALSO READ: First Bank Keeping says now no longer aware about bank’s takeover by Otedola

FBN Holdings holds a substantial percentage of the eight per cent. A share rob of this nature is in overall dazzling to sellers as a top payment can be added to the gorgeous cost that has been agreed to by each and each occasions of the transaction.

“So there are expectations that that will enhance the earnings of FBN Holdings. That roughly (spurred) activities on FBNH as a ticker. That’s the connection between FBNH and Airtel,” the source acknowledged.

Shares in FBN Holdings rose 1.24 per cent to N12.25 per unit on Friday following the news.

The First Bank switch marks Mr Otedola’s foray into banking, having offered off his shareholding in Distinctiveness Oil Plc  in 2019 to consolidate his investment in Geregu Vitality Plc.

The acquisition, estimated to have taken its stake in FBN Holdings past 5 per cent, will buy Mr Otedola’s shareholding above that of Oba Otudeko and Oye Hassan Odukale, two of the firm’s ideal owners with 1.5 per cent and 1.03 per cent holdings respectively.

Till now, Nigeria’s 2nd richest man, Mike Adenuga, had been making packed with life plans  to wrest alter of the prime station in FBN Holdings ownership sooner than now.

Mr Otudeko, the instantaneous past chairman of FBN Holdings board, change into ousted from the organisation’s prime hierarchy this Also can merely after a warfare of passion and violation of device in appointing the manager govt of the community’s commercial banking, First Bank, irked the regulator, the Central Bank of Nigeria.

“There could be a requirement that he has to sell off his shares because he’s no longer any longer chairman. Take into accout that, any individual has to dangle end those shares. So I believe that that’s what resulted in Otedola changing into the unique ideal shareholder,” the source acknowledged.

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