Femi Otedola, Chairman of First HoldCo Plc, has reinforced his grip on the company by acquiring approximately 680.8 million additional shares through a private placement valued at nearly N29.6 billion. This move solidifies his position as a major shareholder as the company advances its equity capital program.
Details of the Transaction
The private placement was executed at N44 per share, a price below the market closing rate of N61 on Wednesday, according to sources familiar with the deal. The offer, totaling around N45 billion, saw nearly 90% of the shares purchased by Otedola and an institutional investor. Otedola alone snapped up roughly 680.8 million shares, costing about N30 billion.
With this latest acquisition, Otedola's total shareholding in First HoldCo has risen to 20.42%. The company's total share capital, including previous funding rounds, now stands at approximately N525.6 billion, exceeding the Central Bank of Nigeria's N500 billion minimum capital requirement for banks. This capital boost is aimed at strengthening the subsidiary First Bank of Nigeria (FBN).
Background of Otedola's Stakebuilding
Otedola became the largest shareholder in May when he acquired 549.53 million shares worth N43.41 billion through his investment vehicle, Calvados Global Services Limited. That purchase gave him around 9.29 billion shares. The ongoing private placement is part of a broader capital raising initiative targeting N1 trillion in fresh capital. Shareholders approved the plan at the Annual General Meeting on May 15, allowing the company to raise up to N253.09 billion through equity instruments, including rights issues, private placements, and bonus issues in domestic and international markets.
Divestment of FBNQuest Merchant Bank
In a separate development, First HoldCo completed the sale of its merchant banking subsidiary, FBNQuest Merchant Bank Limited, to EverQuest Group. The transaction aligns with the company's strategy to optimize capital allocation, improve efficiency, and focus on core commercial banking operations. EverQuest Acquisition LLP, a consortium of investment and financial services firms, emerged as the preferred bidder after a competitive selection process.
