It can be confirmed that Femi Otedola, is behind a massive buy out of the shares of FBN Holding, one of Nigeria’s top tier banks.
According to various sources, the majority stake in FBN Holding Company, owners of Nigeria’s oldest bank, First Bank, is said to have been on the trading floor of the Nigerian Stock Exchange leading to Otedola’s slow and careful buying of the company’s shares.
We know that Femi Otedola is now the bank’s majority shareholder, with an announcement coming soon.
Billionaire investor and restructuring specialist, known for taking over African Petroleum at the turn of the century and making it a dominant player in the oil and gas sector, has been picking up bank shares for months, gradually building his holdings and outperforming the shares of another shareholder of the bank.
It is believed that Mr Otedola acquired the bank’s shares through a vehicle, Calvados Global Services Ltd. It is also likely that other vehicles who may also have collected shares may be connected to Mr Otedola.
Currently, FBNH has 34.7 billion free-floating shares, which means it is held by multiple shareholders. This means that shares can be easily purchased on the stock exchange.
The final audited account of FBN Holdings has no shareholder with up to 5% ownership of the banking giant.
Nairametrics believes that Mr Otedola, through his agents and investment vehicles, now owns more than 5% of the bank and is positioned as the bank’s largest individual shareholder.
According to our sources, FBNH shares have appreciated over the past 6 months as the share price traded just above N7.
However, rumours of an imminent takeover were circulating among traders, pushing the bank’s share price to the N8 ceiling in late September.
Further off-market block purchases of hundreds of millions of units were reported by merchants with knowledge of the transaction, although it was not immediately clear who was behind the purchases. When the rumours surfaced in October, FBNH’s share price soared to N12 per share, up 69% in two weeks.
Traders who spoke on condition of anonymity said most of the demand for the shares turned bullish when it became clear that Otedola could be behind some of the big buys. One trader, in particular, suggests that investors view its potential bank takeover as a positive sign as it leads the same dynamic that followed Forte Oil’s share price, making it one of the best-performing stocks in 2013 after having achieved a share price growth of more than 1000% that year.