…Otedola Expands Stake in FirstHoldCo
Nigerian businessman Femi Otedola has expanded his ownership in FirstHoldCo, the parent company of First Bank of Nigeria Limited, through additional share purchases valued at about N2 billion.
According to filings with the Nigerian Exchange Limited (NGX), Otedola on September 23 acquired 39,313,379 shares at N31 per share, representing a transaction worth N1.21 billion. On the same day, Calvados Global Services Limited, a company related to Otedola, purchased 25,565,289 ordinary shares at the same price, valued at N792.5 million.
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Following the latest acquisitions, Otedola’s direct shareholding now stands at 3,251,346,245 units, representing 7.77 per cent of FirstHoldCo, while his indirect holdings through related entities amount to 3,491,125,586 units, or 8.34 per cent.
At the current market price of N31 per share, Otedola’s total 6.742 billion shares are valued at about N209 billion.
Market context and valuation
FirstHoldCo shares have traded between a 52-week high of N37.5 and a 52-week low of N23.05, reflecting increased investor activity around the stock.
In July, the Securities and Exchange Commission (SEC) granted a “no objection” approval to a major N323.45 billion off-market transaction involving the company. The July 16 deal saw the transfer of over 10.4 billion shares from entities associated with Oba Otudeko and Tunde Hassan-Odukale to RC Investment Management.
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RC Investment was later identified as a trustee acting under an arrangement coordinated by the Central Bank of Nigeria (CBN) and FirstHoldCo.
Clarifications on regulatory issues
In a note issued on June 19, FirstHoldCo addressed regulatory matters linked to the CBN’s circular on “regulatory forbearance in respect of Single Obligor Limit (SOL) and other credit facilities.”
The company stated: “The SOL breach of our primary subsidiary, First Bank of Nigeria Limited, is related to two customers with foreign currency loans arising from over 200 per cent currency devaluation in 2023/2024. With the planned completion of the capital raise in the second half of 2025 among other measures, the bank will cure the breach in this regard.”
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FirstHoldCo further explained that the bank’s forborne loans involve syndicated facilities within industry exposures, noting that “the consortium of lenders is working to re-tenor the facilities to align with their cashflows as all the assets are back to active production and generating appreciable revenue.”
The firm added that “any loan not fully re-tenored will be fully provisioned and exit forbearance.”
Commitment to stakeholders
FirstHoldCo reaffirmed its commitment to maintaining dividend payments, stating that “as a well-diversified financial holding company, FirstHoldCo will sustain its dividend payments in 2025 and beyond as we remain committed to our esteemed stakeholders.”
