Billionaire businessman and Chairman of FBN Holdings, Femi Otedola, has once again increased his shareholding in the company, further solidifying his position as the single largest shareholder of the financial services giant.
In a notice to the Nigerian Stock Exchange (NGX), Otedola confirmed that he acquired an additional 797,946,415 shares of FBN Holdings at an average price of N21.58, amounting to a transaction value of N17.2 billion. This latest acquisition boosts his combined stake to 11.64 percent, making him the only shareholder with a total shareholding exceeding 10 percent.
Last week, Otedola had acquired N18.9 billion worth of shares, increasing his shareholding to 9.41 percent. With the latest acquisition, his total share value now stands at N36.1 billion within just a few days. Otedola now holds a combined 4.178 billion shares out of the company’s total outstanding shares of 35.895 billion.
Forbes-listed billionaire Otedola has invested an estimated N102 billion since he began acquiring FBN Holdings shares three years ago, starting in October 2021, when he first announced a 5.07 percent shareholding. By December 2021, he increased his stake to 7.57 percent. In mid-2022, he reduced his stake to 5.24 percent by divesting approximately 30 percent of his shareholding. However, he resumed acquiring shares in 2023 amid ongoing controversy over the bank’s majority ownership.
Following a review and confirmation by the Central Bank of Nigeria (CBN), only two shareholders were identified as holding over five percent of FBN Holdings shares: Oba Otudeko’s Barbican Capital and Otedola. By the end of the first quarter of 2024, Otedola’s shareholding was confirmed at 7.01 percent, up from 5.65 percent at the end of 2023, officially surpassing Otudeko as the largest single shareholder.
With this latest development, Otedola now effectively controls the bank after months of internal shareholder positioning. The bank has appointed a new Group Managing Director/CEO and reconstituted its board, with Otedola as Chairman.
Otedola’s venture into the financial services sector now makes him the only Nigerian billionaire (in dollars) to own a majority stake in a commercial bank in the country. He is also one of the largest individual shareholders of any financial services company in Nigeria.
His entire investment represents about 13 percent of the financial holding company, which has a market capitalization value of N759 billion. Earlier this year, FBN Holdings reached an all-time high market capitalization of one trillion naira as its share price surged in a bull market.
Meanwhile, the bank is expected to announce a rights issue or public offer as it seeks to raise an estimated N248.7 billion to meet its N500 billion minimum ordinary share capital requirement. This potential rights issue could see Otedola further increase his stake in the bank.
