Otedola raises stake in First HoldCo, acquires additional N18bn shares

Femi Otedola has increased his stake in First HoldCo Plc following an additional acquisition of 138.04 million ordinary shares for about N18.11 billion.

In a regulatory filing dated August 7, First HoldCo said Calvados Global Services Limited, a company related to Otedola as a significant shareholder, purchased 138,041,465 shares at N131.20 per share on the Nigerian Exchange (NGX).

The transaction, which took place on August 6, increases Otedola’s stake in the financial services group from 11.85 billion shares (25.8 percent) to 11.99 billion shares (26.1 percent).

The acquisition comes days after Otedola signalled plans to increase his stake in First HoldCo beyond his current holding of about 26 percent.

Speaking in an interview on August 3, the businessman said he had invested more than N600 billion of his personal wealth in the lender, describing the investment as a “long-term generational commitment” rather than a turnaround play.

Responding to speculation about increasing his ownership, Otedola said his investment philosophy favours majority control.

“My investment threshold is always over and above 51 percent,” he said.

“One of my key investment principles is that firm shareholder control, with due regard for minority interest, is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders.”

The latest purchase follows a sustained rally in First HoldCo’s share price.

On Thursday, the lender’s stock rose to an all-time high of N140 per share, pushing its market capitalisation to N6.37 trillion and cementing its position as Nigeria’s most valuable listed banking group.

The stock has gained more than 190 percent since the beginning of the year, driven by strong investor demand and expectations surrounding the bank’s ongoing transformation under Otedola’s leadership.(TheCable)