Otedola buys N77.6 billion shares in First HoldCo, increasing stake to nearly 22%

Femi Otedola, the chairman of First HoldCo Plc, bought 706.1 million new shares in the banking group on Wednesday, according to a market report. This purchase raised his stake in the company to 21.95 percent.

The businessman bought the shares through Calvados Global Services Limited, which is his special purpose vehicle. The various transactions totaled N77.6 billion.

With this new share acquisition, Otedola is now just about one percent away from RC Investment, which currently holds the largest stake of 22.94 percent in First HoldCo.

RC Investment became the trustee for 10.4 billion shares that were sold on the same day last July. This sale involved two of First HoldCo’s major shareholders, Oba Otudeko and Oye Hassan-Odukale.

Before that, Otudeko and Hassan-Odukale held their shares through Barbican Capital Limited and Leadway Group & Affiliates, respectively.

Mr Otedola has been buying shares in First HoldCo since 2021. That year, he became the largest shareholder of the financial services group. His last purchase was in June when he added 672.9 million shares worth N29.6 billion to his collection.

He made this latest buy during the N45 billion second phase of the lender’s N350 billion private placement program, with each share sold for N44.

First HoldCo became Nigeria’s most valuable bank stock on Monday. The company plans to use the money raised from the program to support First Bank of Nigeria Limited, its commercial banking division. This is part of a plan to restore its capital and strengthen its overall balance sheet.

However, First HoldCo lost this title to Zenith Bank on Tuesday. Zenith Bank was valued at N4.84 trillion, while First HoldCo’s value was N4.77 trillion.

First HoldCo aims to increase its paid-up capital to N1 trillion. They got approval from shareholders in the last annual general meeting in May.