Femi Otedola Increases Stake in First Holdco to 21.95%
Billionaire businessman Femi Otedola has acquired an additional N77.6 billion worth of shares in First Holdco Plc, lifting his total stake in the holding company to 21.95%. The transaction, executed through his investment vehicle, Calvados Global Services Limited, involved the purchase of 3.5 billion shares at an average price of N22.17 per share, according to a filing with the Nigerian Exchange (NGX) on Thursday.
Details of the Transaction
The share acquisition was completed in several tranches between July 18 and July 22, 2026. Prior to this purchase, Otedola held a 16.5% stake in First Holdco, which he had built up over the past year. The latest buy-in makes him the single largest shareholder, surpassing other major investors such as the Nigerian Sovereign Investment Authority and various pension funds.
According to the filing, Calvados Global Services Limited now holds a total of 5.8 billion shares in First Holdco. The transaction was financed through a combination of internal accruals and debt, Otedola's spokesperson confirmed in a statement.
Strategic Rationale
Otedola described the investment as a vote of confidence in the long-term prospects of First Holdco, which owns a diverse portfolio of assets including banking, insurance, and energy subsidiaries. In a statement, he said: “I believe in the fundamental strength of First Holdco’s business model and its ability to generate sustainable value for shareholders. This increased stake reflects my commitment to the company’s growth trajectory.”
First Holdco’s share price has appreciated by 28% year-to-date, driven by strong earnings from its banking arm and improved performance in its energy division. The company reported a net profit of N124 billion in the first half of 2026, a 15% increase compared to the same period last year.
Market Reaction
The news of Otedola’s increased stake sent First Holdco shares up by 5.2% on Thursday to close at N23.50 per share, outperforming the NGX All-Share Index which gained 0.8%. Analysts at Chapel Hill Denham said in a note that Otedola’s move signals strong insider confidence and could attract more institutional investors to the stock.
First Holdco’s board welcomed the development, with Chairman Alhaji Aliko Dangote stating: “We are delighted to have Mr. Otedola as a significant shareholder. His business acumen and long-term view align with our strategic objectives.”
Impact on Corporate Governance
Industry observers note that Otedola’s enlarged stake could lead to a greater say in the company’s strategic direction, including potential board representation. The businessman has a history of taking active roles in companies he invests in, such as his previous involvement with Zenith Bank and Forte Oil.
First Holdco is scheduled to hold its annual general meeting in October, where shareholders will vote on key resolutions including dividend payments and board appointments. Otedola’s increased influence is expected to be a topic of discussion among minority shareholders.
The transaction also underscores the growing trend of high-net-worth individuals increasing their exposure to Nigerian equities, as the stock market continues its recovery from the 2023 downturn. The NGX All-Share Index has gained 12.4% in 2026, buoyed by improved macroeconomic conditions and investor confidence.
