First Holdco Plc, the oldest banking group in Nigeria, saw a significant change in its holdings as Oba Otudeko, a major stakeholder, left the company in a deal worth N323.33 billion.
In 17 off-market, negotiated transactions, 10.43 billion common shares of First Holdco were exchanged on the Nigerian Exchange (NGX) for an average price of N31 per share. At N323.33 billion, the deal represented around 25% of the group’s total shares, of which there are currently 41.87 billion outstanding.
Outside of the regular price discovery of the open market, buyers and sellers with large transactions can pre-arrange the terms, including pricing and transfer, through the NGX negotiated trade window. After that, these deals are put on the market for a formal transfer and ownership change completion.
According to insiders, the Otudekos, who have been involved in ownership and customer disputes with the banking company, were the owners of the First Holdco shares that were traded yesterday.
The banking group has three prominent key shareholders: Hassan-Odukale, Femi Otedola, and the Otudekos. A number of additional stockholders own a sizable yet insignificant stake.
According to current regulations, a significant stake is defined as five percent or more of the stock. However, because current regulations permit a certain amount of time for the submission of required documentation on a change of ownership, the buyer’s name was still unknown at the end of business.
A new, sizable investor in a Nigerian bank must be screened and approved by the Central Bank of Nigeria (CBN). Many parties had demanded that the Otudeko, who had guided the banking company through several pivotal periods of its history, and a new generation of investors, led by Lagos billionaire Mr. Femi Otedola, settle their differences through negotiation.
After acquiring the largest individual share in the oldest banking company, Otedola, who is currently the chairman of First Holdco, began a turnaround that resulted in the departure of numerous senior executives and legal actions against numerous stakeholders and creditors.
With First Holdco’s share price rising to almost N32 per share and the group’s market capitalization surpassing N1.3 trillion, the market responded favorably to the deal. The off-market block sale buoyed the market as total trading on the NGX increased by 807 per cent to 11.67 billion shares worth N363.41 billion.
