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Analysts foresee spike in FBNH share price as Otedola becomes major shareholder

“This is likely to impact the price of the stock in the coming days and weeks.” 

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FBN Holdings Plc

Some analysts in the Nigerian capital market have foreseen a rise in the share price of FBN Holdings Plc as the firm confirmed Femi Otedola, Nigerian billionaire, the major shareholder of First Bank Nigeria, after acquiring a 5.07 per cent equity stake.

The organisation noted that it received notification from APT Securities and Funds Limited that its client, “that Mr Otedola Olufemi Peter and his nominee, Calvados Global Services Limited have acquired a total of 1,818, 551,625 units of shares from the Company’s issued share capital of 35,895,292791.”

“Based on the foregoing, the equity stake of Mr Otedola Olufemi Peter and his nominee in the company is now 5.07%,” the notice signed by Seye Kosoko, company secretary, said.

Speaking on the development, President of the Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, said the situation implied a struggle for control of FBN Holdings and its subsidiary, First Bank Nigeria Limited, saying, “This is likely to impact the price of the stock in the coming days and weeks.”

Also speaking, Rotimi Fakayejo, the Chief Executive Officer of Enterprise Stockbrokers, said he expects a rise in the demand for the shares of FBN Holdings, “Definitely a rise in share price would occur. I see a situation whereby proxy accounts held by some of the directors will be converted to direct holding.”

Fakayejo explained further that noting that the company would soon release its financial statements for the third quarter of 2021, Fakayejo said a positive result would be a catalyst to sustain the growth in the company’s market value.

A research analyst at Atlas Portfolios Limited, Olaide Baanu, also said his outlook for FBN Holdings was largely positive, adding that, “Firstly, with the sell-off of Oba Otudeko’s stake to Otedola, the bank’s non-performing loans will reduce. Also, the sale of Airtel Africa Plc, of which FBNH is among those with high stakes, will provide more cash for investments.”

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Baanu explained that irrespective of who owns a controlling interest in the company, whether Otedola, Odukale, or any other major shareholder, FBN Holdings retains good fundamentals.

 

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