Otedola Purchases an Extra N16.2 Billion Worth of Shares to Boost His Stake in FBN Holdings

Femi Otedola, the chairman and majority shareholder of First Bank of Nigeria (FBN) Holdings, has raised his ownership in the company to 13.15 percent.

Otedola Purchases an Extra N16.2 Billion Worth of Shares to Boost His Stake in FBN Holdings. Credit: @femiotedola Source: Instagram

Femi Otedola, a prominent Nigerian businessman and philanthropist, assumed the position of Chairman of First Bank of Nigeria Limited in June 2021.

His appointment marked a significant moment in the banking sector, given Otedola's extensive experience in business and finance.

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Otedola, who has a diverse portfolio including investments in the energy sector and other industries, took over leadership of First Bank at a crucial time.

The bank, one of the oldest and largest financial institutions in Nigeria, was undergoing a period of transformation aimed at improving governance and enhancing its operational strategies.

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In a statement signed by Adewale Arogundare, Acting Secretary of FBNH, released by the Nigerian Exchange (NGX) on Thursday, it was noted that Otedola raised his stake by acquiring 534,094,407 shares at N30.00 each between September 23 and 25.

Otedola's acquisition increased his interest in FBN Holdings from 11.67 percent (4,187,602,704 shares) to 13.15 percent (4,721,697,111 shares), valued at N136.9 billion as of Wednesday.

This move also widened the gap between him and Barbican Capital Limited, the second-largest investor in FBN Holdings, which holds an 8.67 percent stake, equivalent to 3,110,400,619 shares valued at N90.2 billion.

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However, there has been a dispute regarding the exact number of shares held by Barbican Capital.

In a lawsuit (no. FHC/L/CS/1172/24) against FBN Holdings, Barbican, owned by Oba Otudeko, claimed it had acquired approximately 5,386,397,202 shares, representing 15.1 percent of FBN Holdings over various periods.

Barbican asserted that its share purchases and issuance dates were accurately recorded by Meristem Registrar and Probate Service Ltd, the bank's appointed registrars, and recognized in the Central Securities Clearing System (CSCS), which documented its share value.

In response, FBN Holdings stated that Barbican Capital notified them on July 7, 2023, about acquiring approximately 4,770,269,843 shares.

However, FBN Holdings informed the court that the Central Bank of Nigeria (CBN) could only verify 3,110,400,619 shares of the claimed amount.