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FirstHoldCo Shareholders React to Oba Otudeko's Exit and Femi Otedola's Consolidation of Control

Strategic Insights

— 2 min read

As First HoldCo's largest shareholder, Femi Otedola, solidifies his position after a landmark off-market transaction, shareholders are weighing in on the strategic move. The exit of former chairman Oba Otudeko, who sold off his shares worth N323.33 billion, has sparked a surge in FirstHoldCo shares, with prices soaring by over 20% in just two trading sessions. Investor interest has been heightened following the transaction, which reshapes the company's ownership structure and sets the stage for Otedola's potential consolidation of control.

Key Takeaways:

  • Femi Otedola, through First Securities Ltd, bought 10.43 billion ordinary shares of First Holdco, representing 25% of the company's 41.87 billion outstanding shares, at an average price of N31 per share, in a block deal on the Nigerian Exchange Limited.
  • The transaction is considered the final phase of Oba Otudeko's exit from the group, with Otedola becoming the largest individual shareholder.
  • Share prices of FirstHoldCo have surged by over 20% in two trading sessions, with the stock opening at N29.30 and closing at N35.40 on Thursday.
  • Shareholders have varying opinions on the transaction, with some viewing it as a win-win situation and others warning against the potential for abuse of corporate governance.
  • The exit of Otudeko comes amid allegations of N12.3 billion fraud, with the Economic and Financial Crimes Commission (EFCC) dragging him to court.
  • The Securities and Exchange Commission (SEC) had investigated the acquisition of 4.77 billion shares of FBN Holdings by Otudeko in July 2023.
  • The latest transaction has cleared the path for Otedola to consolidate his control within First HoldCo.

Statistics:

  • 41.87 billion - First Holdco's outstanding shares.
  • 10.43 billion - Ordinary shares traded in 17 off-market deals at an average price of N31 per share.
  • N323.33 billion - Value of Oba Otudeko's shares sold off.
  • 25% - The percentage of First Holdco's shares bought by Otedola.
  • 17 - Number of off-market, negotiated deals in which the transaction was executed.
  • N31 - Average price per share traded in the block deal.
  • N20% - The surge in FirstHoldCo shares over two trading sessions.

Sources:

  • Daily Trust: "Oba Otudeko Loses Control of First Bank as Femi Otedola Emerges New Largest Shareholder"
  • FirstHoldCo: "Femi Otedola Appointed Chairman of First HoldCo Board"
  • Securities and Exchange Commission (SEC): "SEC Investigates Acquisition of 4.77 Billion Shares of FBN Holdings by Otudeko"
  • Economic and Financial Crimes Commission (EFCC): "EFCC Files 13-Count Charge Against Otudeko and Others for Alleged N12.3 Billion Fraud"

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