Otedola Raises Stake To 20% In First HoldCo After Acquiring N29bn Shares

By Olumuyiwa Olumuyiwa

Femi Otedola, the chairman of First HoldCo, has raised his controlling stake in the firm to 20.2% by acquiring 680 million shares in the financial institution.

Otedola acquired the shares for N29.6 billion via a private placement, after First HoldCo offered a share at N44 — which is below Thursday’s closing share price of N61 — to private investors.

The foremost Nigerian business man pulled this off in collaboration with another institutional shareholder.

According to a source, Otedola and the other shareholder acquired 90 percent of the N45 billion shares First HoldCo offered to investors through the private placement,

“The private placement has been completed and Mr. Otedola acquired about 680.8 million shares investing about N30 billion in the bank (Holdco). Another institutional investor who is a shareholder acquired most of the rest,” the source said.

Following the private placement, First HoldCo’s share capital has increased to N525.6 billion, above the minimum regulatory capital requirement of N500 billion set by the Central Bank of Nigeria (CBN).

Recall that First HoldCo recently successfully completed the second tranche of an ongoing N350 billion private placement programme.

Through the programme the company intends to inject into First Bank of Nigeria Limited (FirstBank), its subsidiary, as part of its capital restoration plan and broader balance sheet strengthening programme.

Otedola has been involved in a series of acquisitions, with the last being in May, when he acquired 549.53 million shares, worth N43.41 billion, through Calvados Global Services Limited, his investment vehicle.

The latest acquisition increases his total shareholding to about 9,285,739,834 shares.

First HoldCo’s private placement programme comes amid plans to achieve a N1 trillion capital base.

To achieve this, during the company’s 14th annual general meeting (AGM) in May, First HoldCo’s shareholders approved the firm’s plans to raise up to N253.09 billion through a combination of public offers, private placements, rights issues, bonus issues, scrip dividends, and other equity instruments across domestic and international markets.