FBNH Reverses Self, Confirms Billionaire Otedola As Majority Shareholder - THE DAILY CRUCIBLE



Sunday, October 24, 2021

FBNH Reverses Self, Confirms Billionaire Otedola As Majority Shareholder

| The Daily Crucible | Published Sunday, October 24, 2021

After initial prevarication, FBN Holdings Plc has confirmed that  billionaire investor and Chairman Geregu Energy, Femi Otedola, is the group’s single majority shareholder after the acquisition of 5.07% of its entire shareholdings from the Nigerian  Exchange Ltd (NGX).

The bank made this known in a statement by its company secretary, Seye Kosoko, on Saturday.

This, he submitted,  again to the Nigerian Exchange, as FBNH valuation rising strongly to N440 billion the share ramp-ups.

This is coming barely 24 hours after the First Bank Holdings, owners of First Bank Nigeria, denied in a notification of possible acquisition of shares by Mr Femi Otedola.

With the latest development, it has now been established that the business mogul had acquired a 5.07 per cent equity stake in the company.

In the first half of the 2021 financial statement, FBNH indicated the group has no single individual with at least 5% shareholding as the figure made available put its free float at 99.71%.
When a company’s share price started popping, it is more likely that an investor is pumping money to take a position for specific reasons, stockbrokers told MarketForces Africa.

From a low point of N7.30 early in the year, FBNH share price peaked at N12.40, according to a mid-day report on Friday before it settled at N12.25 per share at the close of the week trading session.

Kosoko, categorically affirmed in the latest statement that Otedola and his nominee now own a 5.07 per cent equity stake in the company., giving the billionaire strong influence on the strategy and operations of the financial service group.

“We refer to our communication to the market dated October 22, on the above subject wherein we stated that we would inform the public of any substantial acquisition, upon receipt of notification from the Shareholder.

“This morning, Oct. 23, 2021, FBN Holdings Plc received a notification from APT Securities and Funds Ltd., that their client, Mr Otedola Olufemi Peter and his nominee, Calvados Global Services Ltd. have acquired a total of 1,818,551,625 units of shares from the company’s issued share capital of 35,895,292,791.

“Based on the foregoing, the equity stake of Mr Otedola Olufemi Peter and his nominee in the company is now 5.07 per cent,” said the statement.

Commenting on the issue, Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said Otedola is now the largest single shareholder in the company.

Kurfi who dispelled the rumours that Otedola had acquired FBN Holdings said he was only the largest single shareholder. He noted that 95 per cent of FBNH shares were still in the hands of other shareholders, comprising Pension Fund Administrators and other individuals.

Kurfi said Otedola started buying into the company in July when the opportunity arose. 

However, it was gathered that one of the major stakeholders of the bank   had probably sold all his stakes due to the issues he had with the Central Bank of Nigeria, thus leaving a window of investment opportunity in FBNH which Otedola saw and moved in.

A source said: “If he put up his shares for sale, anyone that has money is free to buy such shares. Otedola is not the only one that bought, someone else bought too. Once a company has left 20 per cent of their stake to the public they are within the regulations.

“The only requirement is that those that bought need to notify the Securities and Exchange Commission, once they do that there is no infraction."

However, it is not yet uhuru for Otedola in his resolve to become a single majority shareholder of the FBNH.

The Daily Crucible gathered that 
by merely acquiring 1,818,551,625 units of shares of FBNH, amounting to a 5.07 per cent of its total issued capital, Mr. Femi Otedola, only joined the trifecta of the Chairman of Globacom, Chief Mike Adenuga; the current Chairman of FBNH, Mr. Tunde Hassan-Odukale, and Oba Otudeko in the fierce investment battle for the control of the holding company.

 Otedola, Adenuga, the Hassan-Odukales and Otudeko’s shareholding are well above five per cent and this has strategically positioned each of them a vantage point hold the lever of the organisation.

FBNH has a total issued share capital of 35,895,292,791.

Findings the capital market sources revealed that Otudeko has not disposed his shares as was initially insinuated.

As of March this year, Otudeko was said to be holding a total indirect stake in excess of 532 million in First Bank, coupled with a direct stake of about six million units, bringing his total stakes to about 538 million units of the issued ordinary shares of the bank.

Also, Adenuga is said to investing in FBNH buying of more shares and his shareholding is believed to be between five and seven per cent while Hassan-Odukale, and allied parties had acquired a total of 1,923,512,099 units of shares, representing 5.36 per cent of the company’s issued share capital.

These companies include: Leadway Assurance Company Ltd, ZPC/Leadway Assurance Prem & Investment Coll Acct, Haskai Holdings Ltd, Leadway Capital & Trust Ltd and LAC Investments Ltd.

Others are Leadway Properties &Investment Ltd, Leadway Holdings, OHO Investment/Oye Hassan-Odukale and Leadway Pensure PFA.

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