…solidifying his position as the company’s largest shareholder
Femi Otedola’s 13.15% stake in First Bank is a significant investment that can have far-reaching implications for the bank and the Nigerian economy. With this substantial shareholding, Femi Otedola becomes a major influencer in the bank’s decision-making process, which can lead to changes in its business strategy and operations.
This strategic decision by Femi Otedola can investment can attract more investors, both local and foreign, to the bank, leading to increased investment and economic growth ¹.
With him as a major shareholder, Otedola can push for better corporate governance, transparency, and accountability, which can enhance the bank’s reputation and stability.
With increased investment and economic growth, First Bank may expand its operations, leading to job creation and reduced unemployment rates.
His influence can lead to the bank’s expansion into new markets, products, and services, increasing its market share and competitiveness.
As a forward-thinking investor, Otedola may drive the bank’s digital transformation, improving its online banking services and fintech capabilities.
With his connections and business network, First Bank may form strategic partnerships and collaborations, enhancing its services and offerings.
However there could be some risk associated with also, as his significant stake can lead to concerns about concentration of ownership and potential conflicts of interest.
The investment may also attract regulatory attention, and First Bank must ensure compliance with relevant laws and regulations.
Overall, Otedola’s investment in First Bank can bring positive changes, but it’s crucial to monitor the bank’s governance, risk management, and compliance to ensure long-term sustainability.
Femi Otedola, Chairman of First Bank of Nigeria (FBN) Holdings, on Thursday increased his stake in the financial institution to 13.15%, solidifying his position as the company’s largest shareholder.
Otedola’s expanded stake follows the acquisition of 534,094,407 additional shares between September 23 and 25, valued at N16.02 billion.
This purchase increased his interest in FBN Holdings from 11.67% (4,187,602,704 shares) to 13.15% (4,721,697,111 shares), raising his total holdings to N136.9 billion as of Wednesday.
The acquisition further widened the gap between Otedola and Barbican Capital Limited, the second-largest shareholder, which holds an 8.67% stake.
Barbican Capital, owned by Oba Otudeko, has contested the exact number of shares it holds in FBN Holdings, claiming to have acquired 5,386,397,202 units representing 15.1% of the company. In a lawsuit against FBN Holdings, Barbican Capital maintains that its share acquisitions were accurately recorded by the Central Securities Clearing System (CSCS) and Meristem Registrar, the company’s appointed registrars.
However, FBN Holdings stated that Barbican Capital notified the institution in July 2023 that it had acquired 4,770,269,843 shares, with the Central Bank of Nigeria (CBN) only verifying 3,110,400,619 shares due to incomplete documentation provided by Barbican Capital.
FBN Holdings further cited CBN guidelines mandating approval for any shareholder acquiring over 5% of a financial holding company’s shares. This regulatory oversight is part of the broader framework for the governance of financial institutions in Nigeria.
Otedola’s increased stake comes after regaining his position as the largest shareholder in June, following a brief period in which Barbican Capital overtook him.
