By By Muminat Ajide
Femi Otedola, chairman of FBN Holdings, has once again maintained his position as the largest shareholder of the financial services giant by acquiring an additional 797,946,415 shares at an average price of N21.58.
This latest purchase, totaling N17.2 billion, increases his combined stake to 11.64%, solidifying his status as the sole shareholder with a holding exceeding 10% of the bank.
Recently, Otedola’s acquisitions have been significant, including a N18.9 billion purchase last week that raised his shareholding to 9.41%.
In total, he now holds 4.178 billion shares out of FBN Holdings’ total outstanding shares of 35.895 billion. According to Nairametrics, Otedola has invested an estimated N102 billion in FBN Holdings since he began acquiring shares three years ago.
His pursuit of a majority stake has been dynamic, starting with a 5.07% shareholding in October 2021, increasing to 7.57% in December 2021, and adjusting to 5.24% by mid-2022 before climbing again in 2023 amid shareholder disputes. By the first quarter of 2024, his stake rose to 7.01%, officially surpassing other major shareholders.
Formerly known for substantial investments in the energy sector, Otedola’s transition towards financial services now positions him as the sole Nigerian billionaire (in dollars) with a majority stake in a commercial bank, underscoring his stature as one of the largest shareholders in Nigeria’s financial sector.
His recent acquisitions indicate confidence in FBN Holdings’ future, aligning with his influential role as Chairman and the bank’s strategic realignment.
Otedola’s total investment in FBN Holdings represents approximately 13% of its N759 billion market capitalization. The bank’s potential rights issue or public offering, aimed at meeting its N500 billion minimum ordinary share capital requirement, could further consolidate Otedola’s position as a leading shareholder.
Reflecting on past experiences, in 2009, Femi Otedola sought to increase his ownership stake in African Petroleum (now Forte Oil).
His attempt encountered regulatory challenges from the Securities and Exchange Commission (SEC) of Nigeria, which raised concerns about the legality, transparency, and governance of the transaction.
The SEC intervened to protect minority shareholders and ensure compliance with Nigerian regulatory standards, ultimately preventing Otedola from acquiring the shares he sought.
This incident drew significant attention in Nigeria’s business and financial sectors due to Otedola’s prominence and the regulatory implications involved.
