A total of ₦324.47 billion was exchanged for 10.47 billion units of FirstHoldco Plc shares in off-market block trading on the Nigerian Exchange Limited, NGX, yesterday.
The mega transaction is tied to billionaire investor Mr. Femi Otedola, who raised his holdings from 15% to approximately 40%, gaining effective control of Nigeria’s oldest bank.
Oba Otudeko, the former Chairman of FirstHoldco, was compelled to divest more than 20% of his shares after the bank’s management, now under Otedola’s influence, moved to press criminal charges against him over past corporate misdeeds. Although the issues had previously been resolved commercially and through regulatory channels, the bank sought legal redress at the Federal High Court in Lagos.
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As part of the agreement, the bank is expected to drop its criminal complaint, allowing the 82-year-old Otudeko to retire with over ₦300 billion in hand, as reported by ThisDay.
Additionally, long-term investors, the Hassan-Odukale family, voluntarily exited the company by selling 5% of their holdings, citing a search for better shareholder value.
Market analysts believe Otedola’s latest acquisition signals a new era of stability for the embattled bank, long plagued by shareholder disputes. However, FirstHoldco still faces significant challenges, primarily raising the ₦500 billion new share capital required by the Central Bank of Nigeria, CBN, within a year. It must secure another ₦154 billion and address non-performing loans totaling up to ₦1 trillion amid tighter CBN regulations ending forbearance.
The off-market transaction was carried out at a fixed price of ₦31.00 per share. Following the news, FirstHoldco’s stock surged by 9.9%, closing at ₦32.20.
Sources confirmed that the trades were privately negotiated and later reported to the Exchange. Seventeen distinct deals occurred, with First Securities Ltd as the primary buyer. Sellers included CardinalStone Securities, Meristem Stockbrokers, Rencap Securities, Regency Asset Management, United Capital Securities, and Stanbic IBTC Stockbrokers. First Securities also acted as a seller in some deals, suggesting portfolio reshuffling or inter-account transfers.
This block trading pushed NGX’s total market value beyond ₦1.44 trillion.
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