Leading First Bank Shareholders Otudeko, Odukale exit, sell off stakes
Two of the top shareholders of First HoldCo Plc, Oba Otudeko and Oye Hassan-Odukale, have offloaded their stakes in the financial services group, easing the path for Femi Otedola, its chair and biggest shareholder, to firm up his holding in the entity.
A total of 10.43 billion shares, equivalent to nearly 25 per cent of the group’s outstanding shares, were traded off-market in 17 negotiated deals on Wednesday at N31, a source told PREMIUM TIMES Thursday.
Shares in First HoldCo accelerated by 9.9 per cent to N32.2 per unit, emerging as the day’s 6th best-performing stock on the bourse in Lagos.
That is its best outing since 17 February, helping the market valuation of the stock to rise past N1.3 trillion.
“Immediately the information entered the market, it pushed the share price sharply upwards to N32.2. The deals happened towards the close of the market,” said a trader with knowledge of the transactions, asking not to be named, given the sensitive nature of the subject.
Otudeko
Mr Otudeko served as the chairman of FBN Holdings (now First HoldCo) from 2012 until 2021, when he was ousted during a shake-up of the board of the institution by the Central Bank of Nigeria for his part in what the regulator described as a breach of corporate governance.
He has been in a tussle for months with Mr Otedola over the top ownership position of FBN Holdings and wrote to the board of the corporation in the first week of January, asking that his rival be removed and he be appointed chairman.
According to the latest audited financial report of First HoldCo, he held 3.1 billion shares (8.7 per cent) in the group as of the end of last year through Barbican Capital Limited.
In January, the Economic and Financial Crimes Commission initiated a lawsuit against Mr Otudeko for his alleged role in a N12.3 billion advanced fee fraud involving Bisi Onasanya, a former CEO of the institution.
Mr Otudeko majority-owns Honeywell Flour Plc, a food company listed on the Nigerian Exchange.
Odukale
Until October 2021, when Mr Otedola emerged as the institution’s foremost shareholder after he acquired considerable shares via off-market deals, Messrs Odukale and Otudeko were the group’s biggest shareholders.
Mr Odukale swiftly claimed to own 5.36 per cent shareholding in the holdco after Mr Otedola announced his acquisitions, arguing that his “cumulative equity stake” was drawn from a combination of his direct, indirect and related party shares in the group.
His controversial claim to a 1.05 per cent stake held by Leadway Pensure PFA, a company he owned, attracted disapproval from the Nigerian Exchange and the National Pension Commission (PenCom).
The contention at the time was how an equity investment from a pool of employees’ pension contributions could qualify as a single individual’s investment.
In November 2021, PenCom said the funds that Leadway Pensure Limited invested in the FBN Holdings Plc shares belonged to Retirement Savings Account holders, not a third party.
Otedola
In October 2021, Mr Otedola officially became the top shareholder of First HoldCo, following share acquisitions representing 5.07 per cent of the issued shares of the company.
A rank outsider in the group’s top ownership until that time, he purchased a further 2.5 per cent stake later in the year, taking his holding to 7.57 per cent.
In January 2024, he became the chairman of the board of directors of the corporation. His holding in First HoldCo climbed to 11.6 per cent in June of that year after he procured 797.7 million shares valued at over N36 billion, according to regulatory filings at the NGX.
According to the latest audited earnings report of First HoldCo, Mr Otedola held 4.71 per cent (1.69 billion shares) directly and 7.09 per cent (2.54 billion shares) indirectly through Calvados Global Services Limited as of 31 December 2024.
Mr Otedola majority-owns Lagos-listed Geregu Power.