Femi Otedola Acquires Additional Shares in First HoldCo: Boosts Stake to 27.16%

• Femi Otedola acquired an additional 138 million shares in First HoldCo Plc at ₦131.2 per share.
• The acquisition brings his total stake in the company to 27.16% of its issued share capital.
• Otedola's growing stake may trigger a review of compliance with Nigerian corporate governance regulations.
• First HoldCo plans to inject proceeds from its private placement programme into First Bank of Nigeria Limited.

The acquisition brings his total stake in the company to 27.16% of its issued share capital.

Femi Otedola, chairman of First HoldCo Plc, has significantly increased his stake in the financial services group. The latest acquisition sees him purchasing an additional 138 million shares at ₦131.2 per share through Calvados Global Services Limited. This brings Mr Otedola's total stake in the company to 27.16% of its issued share capital. Notably, this is not his first major investment in First HoldCo; he has steadily increased his investment since emerging as the largest shareholder in 2021.

This development may trigger a review of compliance with Nigerian corporate governance regulations. Specifically, there could be scrutiny on shareholder disclosures and capital restoration requirements. As part of its private placement programme, First HoldCo plans to inject proceeds into its flagship commercial banking subsidiary, First Bank of Nigeria Limited. This move is aimed at strengthening the balance sheet and restoring capital. However, it remains to be seen how this will impact Otedola's stake in the company.

Otedola's growing stake in First HoldCo has significant implications for the company and its stakeholders. With his total shareholding now valued at approximately ₦1.74 trillion, he wields considerable influence over the financial institution. The acquisition also highlights the potential for further investments in the Nigerian banking sector. As the largest shareholder, Otedola's actions will be closely watched by investors and regulators alike.

This development may trigger a review of compliance with Nigerian corporate governance regulations, particularly with regards to shareholder disclosures and capital restoration requirements.

Source: Original reporting via Premium Times