First HoldCo Plc, the parent company of Nigeria’s oldest financial institution, First Bank of Nigeria
Limited, has witnessed a significant shift in its ownership structure as key shareholders, Oba Otudeko and Oye Hassan-Odukale, have divested their huge stakes. This landmark transaction, executed through a series of off-market negotiated deals, has cleared the path for billionaire businessman Femi Otedola, the current chairman, to consolidate his control over the financial powerhouse.
The news was met with immediate positive sentiment in the market, with First HoldCo’s share price surging by 9.9% to N32.2 per unit on the Nigerian Exchange (NGX) following the announcement, pushing its market capitalization beyond N1.3 trillion. This robust performance underscores investor confidence in the newfound stability and strategic direction anticipated under Otedola’s leadership.
Meanwhile, confirmed exit of Oba Otudeko, a former chairman of First Bank, involved a colossal N323.33 billion transaction, with 10.43 billion ordinary shares changing hands in 17 off-market deals at an average price of N31 per share. This represents approximately 25% of the group’s issued share capital. While the acquirer’s identity was not immediately disclosed in regulatory filings, market speculation and subsequent reports strongly indicate that Femi Otedola was the primary beneficiary, significantly increasing his shareholding from an initial 15% to an estimated 40% of the company. Oye Hassan-Odukale also reportedly sold his 5.36% stake, further cementing Otedola’s dominant position.
This development brings to a close years of boardroom skirmishes and shareholder disputes that have often overshadowed First HoldCo’s operational focus. Oba Otudeko’s re-entry into the major shareholder league in July 2023, acquiring 4.7 billion shares, had reignited a protracted governance battle. Prior to this, Otedola had emerged as the single largest shareholder in December 2021. The latest divestment by Otudeko and Odukale is widely seen as a resolution to these long-standing conflicts.
Market analysts believe this strategic ownership shift will usher in a new era for First HoldCo, characterized by enhanced stability and a clearer strategic vision.
The increased influence of Femi Otedola is expected to bring a renewed focus on long-term growth strategies, potentially mirroring the success he has achieved in other ventures. However, First HoldCo still faces the immediate challenge of meeting the Central Bank of Nigeria’s (CBN) recapitalization directive, which mandates all banks to achieve a minimum capital base of N500 billion. As of June, First HoldCo had reportedly raised N346 billion, leaving a shortfall that will need to be addressed to meet regulatory requirements. The exit of these long-standing shareholders marks a pivotal moment in First HoldCo’s history, signaling the end of an era of contentious ownership and the beginning of what many hope will be a period of sustained growth and stability under a more consolidated leadership.
