Femi Otedola acquires N29bn shares in First HoldCo, increases stake to 20%

Femi Otedola, chairman of First HoldCo, has acquired 680 million shares in the financial institution, increasing his stake to 20.42 percent.

The shares were purchased for N29.6 billion through a private placement, with First HoldCo offering shares at N44 each — below Thursday’s closing market price of N61 — to select investors.

According to a source, Otedola, alongside another institutional investor, acquired about 90 percent of the N45 billion shares offered in the private placement.

“The private placement has been completed, and Mr. Otedola acquired about 680.8 million shares, investing close to N30 billion in the HoldCo. Another institutional investor, who is also a shareholder, acquired most of the remaining shares,” the source said.

Following the transaction, First HoldCo’s share capital rose to N525.6 billion, surpassing the N500 billion minimum regulatory capital requirement set by the Central Bank of Nigeria (CBN).

The development comes after the company completed the second tranche of its ongoing N350 billion private placement programme. The proceeds are expected to be injected into its subsidiary, First Bank of Nigeria Limited (FirstBank), as part of a broader capital restoration and balance sheet strengthening strategy.

Otedola has been steadily increasing his stake in the company. In May, he acquired 549.53 million shares worth N43.41 billion through Calvados Global Services Limited, his investment vehicle.

With the latest acquisition, his total shareholding now stands at approximately 9.29 billion shares.

First HoldCo’s private placement programme is part of its broader plan to achieve a N1 trillion capital base. To this end, shareholders at the company’s 14th Annual General Meeting (AGM) in May approved plans to raise up to N253.09 billion through a mix of public offers, private placements, rights issues, bonus issues, scrip dividends, and other equity instruments across domestic and international markets.