Otedola raises FBNH stake to 26.01% with ₦222bn deal
Billionaire investor Femi Otedola significantly expanded his majority equity control in First HoldCo Plc, increasing his stake to 26.01% through a ₦222 billion share transaction.
Billionaire investor Femi Otedola significantly expanded his majority equity control in First HoldCo Plc, increasing his stake to 26.01% through a ₦222 billion share transaction. The multi-billion naira acquisition reinforces institutional confidence in the financial institution’s capital growth trajectory.
Otedola’s increased stake in First HoldCo is a significant vote of confidence in the bank’s prospects. The ₦222 billion transaction is one of the largest equity acquisitions in Nigeria’s banking sector, and it signals that Otedola believes the bank’s shares are undervalued. The acquisition also strengthens Otedola’s influence over the bank, which has been undergoing a turnaround.
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 increased his stake in First HoldCo to 26.01% with a ₦222 billion deal. The move signals confidence in the bank’s future. The question is whether Otedola’s influence will be positive or negative for the bank’s governance.