Otedola buys ₦18.1bn stake in First HoldCo
Femi Otedola expanded his stake in First HoldCo with a fresh acquisition of 138 million shares valued at ₦18.1 billion, reinforcing his position as the largest single shareholder.
Billionaire investor Femi Otedola expanded his equity stake in First HoldCo Plc through a fresh acquisition of 138 million shares valued at ₦18.1 billion. The open-market transaction reinforces Otedola’s position as the financial holding group’s largest single shareholder amid nationwide banking sector recapitalisations.
The acquisition follows Otedola’s earlier purchase of a significant stake in the bank, which made him the largest single shareholder. The latest transaction signals his continued confidence in the bank’s prospects. The timing is significant, as the banking sector is undergoing a recapitalisation exercise that is reshaping the industry.
This echoes the 2021 acquisition of a significant stake in First Bank by Otedola, which also sent shockwaves through the banking sector. The mechanism then was different, but the result was the same: Otedola consolidating his influence in the banking sector.
The winners: Femi Otedola, who has increased his stake in a major bank; and First HoldCo, which gains a committed shareholder. The losers: other shareholders, who may be diluted; and the Nigerian banking sector, which faces increased concentration of ownership.
Bottom Line: Otedola has bought more shares in First HoldCo. His stake is growing. The question is whether his influence will be positive or negative for the bank’s governance.