Billionaire businessman, Femi Otedola, the chairman of First HoldCo, has acquired 680 million shares in the financial institution, raising his controlling stake in the firm to 20.42 per cent worth about N566 billion.
Otedola acquired the shares for N29.6 billion via a private placement, after First HoldCo offered a share at N44 — which is below Thursday’s closing share price of N61 — to private investors.
Otedola and another institutional shareholder acquired 90 percent of the N45 billion shares First HoldCo offered to investors through the private placement, according to a source.
“The private placement has been completed and Mr. Otedola acquired about 680.8 million shares investing about N30 billion in the bank (Holdco). Another institutional investor who is a shareholder acquired most of the rest,” the source said.
Following the private placement, First HoldCo’s share capital has increased to N525.6 billion, above the minimum regulatory capital requirement of N500 billion set by the Central Bank of Nigeria (CBN).
TheCable had earlier reported that First HoldCo has successfully completed the second tranche of an ongoing N350 billion private placement programme, which the company plans to inject into First Bank of Nigeria Limited (FirstBank), its subsidiary, as part of its capital restoration plan and broader balance sheet strengthening programme.
Otedola has been involved in a series of acquisitions, with the last being in May, when he acquired 549.53 million shares, worth N43.41 billion, through Calvados Global Services Limited, his investment vehicle.
The latest acquisition increases his total shareholding to about 9,285,739,834 shares valued in excess of N566 billion based on Friday’ share price of N61.
First HoldCo’s private placement programme comes amid plans to achieve a N1 trillion capital base.
To achieve this, during the company’s 14th annual general meeting (AGM) in May, First HoldCo’s shareholders approved the firm’s plans to raise up to N253.09 billion through a combination of public offers, private placements, rights issues, bonus issues, scrip dividends, and other equity instruments across domestic and international markets.
