Investors Lose N2.6 Billion Amid First Bank’s Shareholder Takeover Controversy 

…  Gets Fresh Query From NGX Over Otedola, Odukale’s Share
First Bank of Nigeria
Investors has lost a whooping N2.6 billion in 24 hours after First Bank of Nigeria disclosed its largest shareholder amid controversy over takeover reports between billionaire businessman, Femi Otedola and Hassan Odukale.
The parent company of Nigeria’s oldest bank has been embroiled in a tussle and controversies for top shareholder title after the incremental acquisition of shares summing up to 5.07 per cent of the group’s issued share capital by billionaire mogul and the chairman of Geregu Energy Group, Femi Otedola, broke into the open.
According to a document made public to the Nigerian Exchange, Odukale and Otedola are the only two large owners with more than a 5% equity stake in First Bank Holdings Plc (NGX) and neither of them has controlling interest yet, either from an accounting or statutory perspective.
However, as the leadership tussle rumbles on, the shares of FBN Holdings has dropped in value from N12.4 per share it closed on Tuesday, to N11.65 per share after Wednesday trade.
There are 35,895,292,792.00 outstanding shares, the 6.45 drop in the value of shares cost investors N2.6 billion loss in one day. Femi’s Otedola share value also dropped from N22.5bn to N21.18bn in one day.
However, the Nigerian Exchange Limited (NGX) has queried FBN Holdings Plc, the holding company of First Bank of Nigeria, for classifying the shareholdings of Tunde Hassan-Odukale and his related parties into two parts of 4.16% and 1.20% respectively.
Nigerian Exchange Group Plc is a leading integrated market infrastructure Group in Africa. The Group services the largest economy in Africa and is strengthening the competitiveness of African economies to achieve global prosperity.
There has been a controversy since Femi Otedola acquired 5.07% stake in the bank, making him the single largest shareholder.
However, a document later surfaced on the internet attributing 5.36% to Hassan-Odukale in what was thought to be boardroom politics to prevent Otedola from becoming chairman.
In response to the query through regulatory filings on Wednesday by Seye Kosoko, the company secretary, FBN Holdings said Hassan-Odukale is its largest single-holder.
Kosoko attributed Leadway Pensure PFA’s entire 2.11% stake in FBN Holdings to Hassan-Odukale, although they are pension funds invested by Leadway on behalf of the public.
Also listed in Hassan-Odukale’s favour by Kosoko is 1.36% of “ZPC/Leadway Assurance Prem &
Inv Coll Acct” which is also insurance funds invested on behalf of the public.
FBN Holdings appears to be classifying both as Hassan-Odukale’s personal investments.
Recall that, INTEL REGION reported that Femi Otedola became the largest shareholder in First bank acquires through different vehicles
Before then, Hassan-Odukale’s stake was put at the territory of 3%.
In trying to clarify its record with the NGX regulation, FBN said it classified Hassan-Odukale’s shareholdings into two because of his significant stakes in related parties.
“The reason for classifying the shareholdings of Mr. Tunde Hassan-Odukale and his related parties into two parts of 4.16% and 1.20% respectively,” FBN Holdings said.
“We wish to reiterate and clarify for your records that the notification of the shareholdings of Mr. Tunde Hassan-Odukale as a Director of First Bank of Nigeria Limited and thus an Insider, was filed with the NGX and other relevant regulators on October 18, 2021.
“The first part of the shareholding classification (4.16%), are shares held directly and indirectly by Mr. Tunde Hassan-Odukale. The second part of the shareholding classification (1.20%), are shares ascribed to Mr. Tunde Hassan-Odukale due to his influence and having significant control.”

Make your comments...