Billionaire businessman and Chairman of First HoldCo, Femi Otedola, has deepened his investment in the financial services group after acquiring 680.8 million additional shares valued at approximately N29.6 billion. The latest transaction increases his ownership stake in the company to 20.42 percent, further consolidating his position as one of the institution’s largest shareholders.
The shares were purchased through a private placement exercise in which First HoldCo offered shares to selected investors at N44 per share, a price significantly lower than the company’s closing market value of N61 on Thursday. Industry sources revealed that Otedola and another institutional investor collectively acquired about 90 percent of the N45 billion worth of shares made available through the placement.
The successful capital raise has boosted First HoldCo’s share capital to N525.6 billion, pushing it above the N500 billion minimum capital requirement mandated by the Central Bank of Nigeria (CBN). The development marks a significant milestone in the group’s ongoing efforts to strengthen its financial position and meet evolving regulatory standards.
The latest acquisition follows another major investment by Otedola in May, when he purchased 549.53 million shares worth N43.41 billion through his investment vehicle, Calvados Global Services Limited. With the new purchase, his total shareholding in First HoldCo has climbed to approximately 9.29 billion shares, reinforcing his long-term commitment to the financial institution.
First HoldCo’s aggressive capital-raising strategy is part of a broader plan to achieve a N1 trillion capital base. During its 14th Annual General Meeting in May, shareholders approved plans to raise up to N253.09 billion through a combination of public offers, rights issues, private placements, bonus issues, scrip dividends, and other equity instruments across local and international markets. The funds are expected to support First Bank of Nigeria Limited and strengthen the group’s balance sheet for future growth.
source: The cable