Ahead Of Impending Recapitalisation, Otedola Raises FBNH Stake To 11.63%

  • Splashes N17.22bn For 2.22% Holdings

In what may be a bid to establish himself as the undisputed majority shareholder of FBN Holdings Plc, parent company of Nigeria’s oldest financial institution- First Bank of Nigeria Limited, billionaire Olufemi Otedola, on Monday acquired 797,946,415 units of the financial holding company at N21.58 each.

In all, Otedola, chairman of FBNH splashed N17.219bn on the FBNH shares, raising his stake so far to 11.63%. just days after acquiring 863,108,810 ordinary shares of the company for a princely N18.912bn, only on Thursday, June 20, 2024.

In what many perceive as part of determination to ensure the impending recapitalisation in the group does not dilute his percentage stake, Otedola, who is also chairman/owner of Geregu Power Plc, according to filings at the Nigerian Exchange Limited by Adewale Arogundade, the Acting Company Secretary, had on Thursday purchased 546,674,034 ordinary shares of the FBN Holdings at N21.97 per share, amounting to N11.977.628.084,94. He also bought 316,506,776 units at N21.91k each valued at N6.934.663.462.16, bringing the total to purchase valued of the 863,108,810 shares or 2.4% of the group’s shares in issue to N18.912bn in one fell swoop.

Otedola, according to the group’s financial reports, who has consistently raised his stake previously held 6.98% stake as of March 31, 2024, has now further widened the gap between him and the previous majority shareholder- Barbican Capital Limited belonging to the long-time director and chairman, Oba Otudeko. Barbican holds 3,110,400,619 units, or 8.67% stake in the group.