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Banking | Finance

Otedola Acquires Fresh N222bn First HoldCo Shares, Stake Rises to 26.01%

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Femi Otedola, Chairman of First HoldCo, has acquired an additional 1.77 billion shares of the financial institution through his investment vehicle, Calvados Global Services Limited.

According to a statement filed with the Nigerian Exchange, NGX, the shares were acquired on Thursday at a total value of N222.20 billion.

The latest acquisition increases Otedola’s shareholding in First HoldCo from 9.99 billion shares to 11.77 billion shares. His stake in the company has risen from 21.96 percent to 25.88 percent.

This is the second major acquisition by Otedola in July. On July 22, he purchased 706.13 million shares valued at N77.58 billion.

With the latest purchase, Otedola’s total investment in First HoldCo stands at N1.47 trillion, the largest shareholding by any investor in the financial institution.

Under the Investments and Securities Act and Securities and Exchange Commission, SEC, rules on mergers and acquisitions, a shareholder that acquires 30 percent or more of the voting shares of a public company is required to make a mandatory takeover offer to remaining shareholders.

The acquisition comes weeks after First HoldCo overtook Zenith Bank to become Nigeria’s most valuable bank on the Nigerian stock market, following a sustained rally in its share price.

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Funsho Arogundade

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