Femi Otedola, well-known as the chairman of First Bank of Nigeria (FBN) Holdings, has made headlines by increasing his shareholdings in the company. His recent acquisition of shares raises his ownership stake to 13.15 percent, amounting to approximately N136.9 billion. This strategic move reflects Otedola’s confidence in the financial institution’s future and aims to solidify his position within the company.
Details of the Financial Transaction
Between September 23 and September 25, Otedola purchased 534,094,407 shares for a total of N16.02 billion. This acquisition elevates his current stake from 11.67 percent to the mentioned 13.15 percent. The transaction has been formally communicated to the capital market via a statement issued by FBN Holdings. Otedola’s decision to increase his stake highlights a huge investment strategy.
Comparison with Barbican Capital
Before this acquisition, Barbican Capital was the second majority investor in FBN Holdings with an 8.67 percent stake, valued at N90.2 billion. The gap between Otedola and Barbican has widened, positioning Otedola as the dominant shareholder with substantial authority in decision-making processes. Although Barbican claims a larger stake, there are disputes regarding the exact number of shares held.
Barbican Capital, owned by Oba Otudeko, has filed a lawsuit claiming ownership of approximately 15.1 percent of FBN Holdings. In contrast, FBN Holdings challenges this assertion, revealing discrepancies in the verification of shares by the Central Bank of Nigeria (CBN). The case underlines the complexities surrounding share ownership and the regulatory landscape in Nigeria’s financial market.
The ongoing legal battle highlights important regulatory requirements set out by the CBN. According to CBN guidelines, any acquisition of shares exceeding 5 percent must receive prior approval. FBN Holdings contended that Barbican Capital had not provided adequate documentation for verification, raising questions about compliance and transparency in ownership claims.
Potential Impact on FBN Holdings
Otedola’s increased stake could influence the bank’s strategic direction and overall stability within the banking sector. As the largest shareholder, he has the power to facilitate significant changes or investments that could enhance performance or market competitiveness. The implications of this acquisition may also extend to investor confidence and stock performance in the future.
