Femi Otedola, the Nigerian billionaire, has become the majority shareholder of First Bank after reportedly buying a whooping N30 billion worth of shares.
According to media reports, Otedola took advantage of the recent First Bank crisis to accumulate the shares.
Recall that the Central Bank of Nigeria (CBN) had wielded its regulatory big stick on the bank by removing all directors of FBN Limited and FBN Holdings Plc.
The apex bank governor, Godwin Emefiele explaining why the board was sacked said First Bank has been afflicted by “bad credit decisions, significant and non-performing insider loans and poor corporate governance practices” over the years.
Since the FBN Holdings Plc board led by Oba Otudeko was kicked out, there has been a tussle for who would become the majority shareholder of Nigeria’s oldest bank. Michael Adenuga, the owner of Glo is said to be also interested in assuming control of First Bank.
If the report of Otedola’s takeover is actually true, it will take his stake in FBN Holdings beyond five percent. It will lift Otedola’s shareholding above that of Oba Otudeko and Oye Hassan Odukale, two of the firm’s biggest owners with 1.5 percent and 1.03 percent holdings respectively.
Responding to the takeover of First Bank in a statement sent to the Nigerian Exchange Limited, the Company Secretary, Seyi Kosoko, said in a statement: “The attention of FBN Holdings Plc (the Company) has been drawn to media reports today, 22 October 2020 purporting that a certain individual has acquired a significant shareholding interest in FBN Holdings Plc {the Company) therefore making him the majority shareholder in the Company,”
“As a listed Company, the shares of FBN Holdings Plc are publicly traded, and sale and acquisition of shares is expected in the normal course of business. We operate in a regulated environment, which requires notification of significant shareholding by Shareholders to the Company, where shares are held in different vehicles, further to which the Company will notify the regulators and the public as appropriate.
“The Company is yet to receive any notification from the individual mentioned in the media report, of such acquisitions. FBN Holdings Plc will always notify the appropriate agencies and authorities whenever it receives any notice of significant shareholding by the Shareholders and the Company’s Registrars.”
