First Bank finally confirms Femi Otedola’s acquisition of 5.07% equity stake

Less than 24 hours after denying notification of possible acquisition of shares by Femi Otedola, FBN Holdings (FBNH) Plc on Saturday confirmed that the business mogul has acquired a 5.07 percent equity stake in the company.

Currently, as at October 2021, Otedola is officially the single largest shareholder of First bank PLC.

FBNH Company Secretary, Seye Kosoko, in another statement on Saturday posted on the Nigerian Exchange (NGX) Ltd website affirmed that Otedola and his nominee now own a 5.07 percent equity stake in the company.

“We refer to our communication to the market dated October 22, on the above subject wherein we stated that we would inform the public of any substantial acquisition, upon receipt of notification from the Shareholder.

“This morning, Oct. 23, 2021, FBN Holdings Plc received a notification from APT Securities and Funds Ltd, that their client, Otedola Olufemi Peter and his nominee, Calvados Global Services Ltd have acquired a total of 1,818,551,625 units of shares from the company’s issued share capital of 35,895,292,791.

“Based on the foregoing, the equity stake of Otedola Olufemi Peter and his nominee in the company is now 5.07 per cent,” said the statement.

Commenting on the issue, Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., told the News Agency of Nigeria (NAN) in Lagos that Otedola is now the largest single shareholder in the company.

Kurfi who dispelled the rumours that Otedola had acquired FBN Holdings said that he was only the largest single shareholder.

He noted that 95 per cent of FBNH shares were still in the hands of other shareholders, comprising Pension Fund Administrators and other individuals.

Kurfi said that Otedola started buying into the company in July when the need arose.

However, a reliable source said that it was Oba Otudeko that sold all his stakes due to issues he had with the Central Bank of Nigeria.

“If he put up his shares for sale, anyone that has money is free to buy such shares.

“Otedola is not the only one that bought, someone else bought too.

“Once a company has left 20 percent of their stake to the public they are within the regulations.

“The only requirement is that those that bought need to notify the Securities and Exchange Commission, once they do that there is no infraction,” said the source.

Otedola has been reported to be a financier of the People’s Democratic Party and is said to have contributed N100 million to President Obasanjo’s re-election expenses in 2003.

He was a close ally of President Goodluck Jonathan.He has served as a member of the Nigerian Investment Promotion Council (NIPC) since 2004, and the same year was appointed to a committee tasked with developing commercial relations with South Africa.

In 2011, Femi Otedola was appointed by President Goodluck Jonathan to Nigeria’s National Economic Management Team. In 2020, Forte Oil rebranded to Adrova PLC.