In a landmark move that signals a major shift in Nigeria’s financial sector, Oba Otudeko, a founding titan and key shareholder of FBN Holdings Plc (First Holdco), has formally exited the group in a blockbuster deal valued at N323.33 billion.
The transaction, which marks the end of Otudeko’s decades-long influence over one of Nigeria’s oldest and most iconic banking institutions, has sent ripples through the stock market and raised questions about the future strategic direction of the holding company.
Industry analysts view the deal as a pivotal turning point with potential implications for shareholder dynamics, boardroom control, and the broader Nigerian banking ecosystem.
A total of 10.43 billion ordinary shares of First Holdco were swapped on the Nigerian Exchange (NGX) in 17 off-market, negotiated deals at an average price of N31 per share.
Insider sources said the First Holdco shares traded yesterday were held by the Otudekos, who have been embroiled in ownership and customer tussles with the banking group.
There are three well-known major shareholders in the banking group- the Otudekos, Femi Otedola and Hassan-Odukale. Several other shareholders hold reasonably large but less than significant stake. A significant stake represents five per cent equity stake or more, according to extant rules.
However, the identity of the buyer remained unverified as at close of business as extant rules allow some extended period for filing of necessary documents on change of ownership.
The Central Bank of Nigeria (CBN) is required to screen and approve a new, significant investor in a Nigerian bank. Many stakeholders had called for negotiated settlement of the disagreements between the Otudeko, who had led the banking group through many significant phases of its history and a new generation of investors in the group led by Lagos billionaire, Mr Femi Otedola.
Otedola, now chairman of First Holdco, had acquired single, individual largest stake in the oldest banking group and started a turnaround, which had seen exit of many senior executives and court cases against many stakeholder-debtors.
The market reaction to the transaction was positive as First Holdco’s share price rose to about N32 per share, pushing the group’s market capitalisation above N1.3 trillion.
The off-market block trade boosted the market as total turnover on the NGX surged by 807 per cent to 11.67 billion shares worth N363.41 billion.
Market pundits said they had anticipated the ownership change, describing it as a new beginning for the banking group.
“It’s a well-known issue around the market that it would happen, “ a senior investment banker and multiple-asset stockbroker told The Nation.
Analysts said the transaction might be a much sought turning point for First Holdco, providing the group with a freedom to accelerate ongoing reforms.
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