A massive off-market block trade involving 10.47 billion units of First Holdco Plc shares, valued at N324.47 billion, was executed on the Nigerian Exchange Limited (NGX) yesterday. The landmark transaction is tied to billionaire investor Mr. Femi Otedola, who increased his stake in the company from 15% to approximately 40%, effectively gaining control of Nigeria’s oldest bank, long seen as underperforming relative to its potential.
Former Chairman Oba Otudeko was compelled to divest over 20% of shares linked to him, as the bank’s management, now under Otedola’s influence, moved to pursue criminal charges against Otudeko for past infractions, despite previous commercial and regulatory resolutions. With the latest deal, it is expected that First Bank will withdraw its criminal complaint, allowing Otudeko, now 82, to retire with over N300 billion in liquidity.
Additionally, long-term investors, the Hassan-Odukale family, voluntarily exited the bank by selling a 5% stake in a separate block trade, seeking improved shareholder value elsewhere.
Market analysts view Otedola’s aggressive acquisition as a potential turning point for First Bank, which has been plagued by prolonged internal shareholder conflicts. However, significant challenges lie ahead, most notably, raising N500 billion in new capital to meet the Central Bank of Nigeria’s recapitalisation deadline, now less than a year away. The bank still needs to raise about N154 billion while addressing non-performing loans reportedly nearing N1 trillion, alongside CBN directives to end forbearance policies.
The trades were executed at a fixed price of N31.00 per share, with First Holdco’s stock closing at N32.20, up 9.9% for the day.
Sources confirmed the transactions were privately negotiated and later reported to the Exchange, rather than carried out through standard trading channels.
Findings revealed that 17 separate negotiated trades occurred, with First Securities Ltd as the primary buyer. Sellers included major broking firms such as CardinalStone Securities, Meristem Stockbrokers, Renaissance Capital (Rencap), Regency Asset Management, United Capital Securities, and Stanbic IBTC Stockbrokers. In some transactions, First Securities Ltd also acted as the seller, indicating internal portfolio rebalancing or inter-account transfers.
This significant off-market activity contributed to pushing the overall market capitalisation past N1.44 trillion.
