Connect with us

Finance

Otedola officially becomes First Bank major shareholder

“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.”

Published

on

Otedola

The First Bank Holdings has officially confirmed Femi Otedola, Nigerian billionaire, as the major shareholder of First Bank Nigeria, after acquiring a 5.07 per cent equity stake.

Meanwhile, the company earlier had denied knowledge of Otedola having its major share, saying it had not received a notification of a significant holding by the billionaire.

According to the firm,  “The attention of FBN Holdings Plc (the Company) has been drawn to media reports today, 22 October 2021 purporting that a certain individual has acquired significant shareholding interest in FBN Holdings Plc {the Company) therefore making him the majority shareholder in the Company.”

A few hours after its denial, the firm noted that it has 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.

It was learnt that the FBN Holdings had previously witnessed unusually massive trading in its shares and the cumulative number of units traded within the period surpassed 2.1 billion as the uptick in trading catapulted its share value by 62.3 per cent from the level it was three weeks ago.

An analyst at Meristem Securities who confirmed the development said the trading boom started with a move by Airtel Africa to acquire a minority stake in Airtel Nigeria.

He said: “There have been lots of activities on FBN Holdings shares over the past two or three weeks now,” he said on condition of anonymity because of the sensitive nature of the subject.

“Initially it was Airtel. Airtel Africa was trying to acquire minority stake in Airtel Nigeria. Airtel Africa is listed but Airtel Nigeria is not listed. So they are trying to acquire the remaining eight per cent minority stake in Airtel Nigeria.”

“FBN Holdings holds a substantial proportion of the eight per cent. A share purchase of this nature is often attractive to sellers as a premium will be added to the fair value that has been agreed to by both parties of the transaction.

Advertisement

“So there are expectations that that will boost the earnings of FBN Holdings. That kind of (spurred) activities on FBNH as a ticker. That’s the connection between FBNH and Airtel.” Shares in FBN Holdings rose 1.24 per cent to N12.25 per unit on Friday following the news.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement
Advertisement

Facebook