Femi Otedola, a Nigerian billionaire, has become a key stakeholder in First Bank Nigeria after acquiring a 5.07 percent equity stake, the company said on Saturday.
The holding company had previously denied knowledge of the acquisition, claiming that it had not received news of Mr. Otedola's considerable ownership.
The Nigerian Exchange Limited said it received notification from APT Securities and Funds Limited that its client, "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," in a follow-up communication sent Saturday.
"Based on the foregoing, Mr. Otedola Olufemi Peter and his nominee's ownership position in the firm is now 5.07 percent," read the note signed by company secretary Seye Kosoko.
Mr. Otedola has now become the bank's single largest shareholder on record as a result of this notification.
“According to the Register of Members as of December 30, 2020, there is no shareholder holding 5% of the shares of FBN Holdings Plc,” the bank claimed in its annual report and accounts for 2020.
This is the first time since that disclosure that the bank has informed the Nigerian Exchange of a big share transaction that has resulted in a person owning a 5% stake in the firm.
FBN Holdings had exceptionally heavy trading in its shares in the ten days leading up to Friday, with a total number of units moved exceeding 2.1 billion. Trading volume increased by 62.3 percent from three weeks earlier, boosting the stock's value by 62.3 percent.
According to a Meristem Securities analyst, the trading frenzy began with Airtel Africa's acquisition of a minority share in Airtel Nigeria.
"Over the last two or three weeks, there have been a lot of actions on FBN Holdings shares," he added on condition of anonymity due to the sensitive nature of the matter.
"At first, it was Airtel. Airtel Africa attempted to purchase a minority share in Airtel Nigeria. Airtel Africa is on the list, however Airtel Nigeria isn't. As a result, they are attempting to purchase the remaining 8% minority holding in Airtel Nigeria."
FBN Holdings owns a significant share of the 8%. A share acquisition of this type is generally appealing to sellers since a premium will be added to the fair value that both parties have agreed to.
"As a result, it's expected that FBN Holdings' earnings would increase." As a ticker, that type of (spurred) activity on FBNH. That is the link between FBNH and Airtel, according to the source.
Following the announcement, FBN Holdings' stock increased 1.24 percent to N12.25 per unit on Friday.
Mr Otedola's move to First Bank is his first entry into banking, following a sale in 2019 to consolidate his holding in Geregu Power Plc.
Mr Otedola's stock in FBN Holdings would rise beyond that of Oba Otudeko and Oye Hassan Odukale, two of the firm's largest shareholders with 1.5 percent and 1.03 percent stakes, respectively, as a result of the transaction.
Mike Adenuga, Nigeria's second richest man, has been trying to gain control of FBN Holdings' top rank in ownership until now.
Mr Otudeko, the immediate past chairman of FBN Holdings' board, was removed from the company's top ranks in May after the regulator, the Central Bank of Nigeria, became irritated by a conflict of interest and a breach of protocol in choosing the group's commercial banking arm, First Bank.
"Because he is no longer chairman, he is required to sell his shares." Those shares must, of course, be taken by someone. So I'm guessing that's why Otedola is now the company's largest shareholder," the person stated.
