First HoldCo Plc has announced plans to dispose of a 25% stake in the company previously linked to Barbican Capital Limited, a firm associated with former FirstBank Chairman, Oba Otudeko.
The Managing Director of First HoldCo, Wale Oyedeji, disclosed the move during an investor conference call in Lagos, stating that “a range of options” are being considered, and the shares would be sold in the open market, though no specific timeline was provided.
The stake originated from a N323.33bn off-market transaction last month, where Barbican Capital transferred 10.43 billion shares (25%) to RC Investment Management Limited, a special purpose vehicle. The unusual structure of the deal triggered scrutiny from the Securities and Exchange Commission (SEC) over the transparency of beneficial ownership.
Oyedeji described RC Investment as a temporary holder, affirming that First HoldCo’s capital-raising plans remain on track. The bank aims to raise N350bn in private placements this quarter, following a N147bn rights issue earlier this year.
The divestment is part of First HoldCo’s broader strategy to meet the Central Bank of Nigeria’s new minimum capital requirements and improve governance transparency.
The original block deal not only marked Otudeko’s final exit from First HoldCo but also caused a trading spike on the Nigerian Exchange, pushing traded volume up by 807% and raising the company’s share price to a 52-week high of N36.45.
At its recent Annual General Meeting, shareholders approved the capital raise, a change in brand name, and a dividend payout of 40 kobo per 50 kobo share for the 2023 financial year, totaling N14.36bn.
The upcoming share sale is expected to restore investor confidence and bring clarity to First HoldCo’s ownership structure, following months of regulatory concern and investor pressure over corporate governance.
